Detailed guide: Stamp Duty Land Tax: buying an additional residential property

Updated: This guidance has been updated to include extra detail about how Stamp Duty Land Tax affects partnerships, trusts and inherited properties.

When the higher rates apply

Individuals and companies need to pay the higher rates when they buy an additional residential property in England, Wales or Northern Ireland. The higher rates apply even if your other residential properties are outside any of these countries.

You’ll also need to pay the higher rates if you don’t own a residential property and buy at least two residential properties at the same time.

Rates on additional properties

Purchase price Rate
up to £125,000 3%
over £125,000 to £250,000 5%
over £250,000 to £925,000 8%
over £925,000 to £1.5 million 13%
over £1.5 million 15%

You’ll need to pay the higher rates on everything you give for the purchase, this is called the ‘consideration’.

If you replace your main home

You won’t have to pay the higher rates if you sell your main home on the same day you buy your new home.

If you sell your main home after you purchase your new home you’ll need to pay the higher rate. You can claim a refund of the higher rates if your old home is sold within 3 years of buying your new home.

You can claim a refund by changing the original return or completing a SDLT repayment request form. This must be claimed within 3 months of the sale or 1 year of the filing date of the return, whichever comes later.

Purchases that aren’t charged the higher rates

You won’t have to pay the higher rates on a new property if the chargeable consideration is less than £40,000.

You also won’t have to pay the higher rates if:

  • someone else holds a lease on the property with more than 21 years to run
  • you purchase a lease that has less than 7 years to run

You won’t be charged the higher rates if your other residential properties meet either of the two criteria above or
each have a value of less than £40,000 when you buy the new property

The higher rates do not apply to:

  • mobile homes, caravans or house boats
  • purpose built student accommodation

Multiple properties in the same building or grounds

Two or more properties bought together may be treated as one if:

  • they are in the same building or grounds
  • the main property accounts for two-thirds of the total consideration

Ownership of the property

Spouses and civil partners

You may be viewed as the owner of a property if it is owned by your spouse or civil partner.

This means if one of you already owns a property and the other person purchases another property, the purchase will be charged at the higher rates.

Spouses or civil partners that are permanently separated will not be treated in this way.

Trusts

You’ll be treated as owning a property if you receive all the income from it and the proceeds from its sale even if you’re not the legal owner.

The beneficiary of a bare trust will be treated as the purchaser of a property.

The beneficiary will also be treated as the purchaser if the trust holds property and the beneficiary is entitled to:

  • to occupy the property for life
  • receive income from the property

When the beneficiary is under 18, the child’s parents are treated as the beneficiary

The trustee will treated as the purchaser of the property if the trust:

  • is not a bare trust
  • does not give the beneficiary a right to occupy a property for life or receive income from it
  • purchases a property for over £40,000 that isn’t subject to a lease of more than 21 years

Companies and partnerships

Companies have to pay the higher rates when they buy any residential properties that are over £40,000 and aren’t subject to a lease of more than 21 years.

You will have the pay the higher rates if you’re partnership already owns a residential property and you purchase another residential property for your partnership.

You won’t have to pay the higher rates if you buy a property for yourself and your only additional properties are used for your partnership’s trade.

Where a trustee buys a property but a beneficiary does not receive any benefits from that property, the purchase is treated as if it were made by a company rather than an individual.

Inherited properties

If you inherit half or less of the major interest in a property in the 3 years before you make a purchase, and you don’t already have an additional residential property, you won’t pay the higher rates.

Source: HMRC

Policy paper: Income Tax: update to treatment of income from sporting testimonials

Updated: Updated to mention the introduction of employer Class 1A NICs on Sporting Testimonial payments above £100,000 will now take effect from 6 April 2019.

This measure confirms that all income from sporting testimonials and benefit matches for an employed sports person will be chargeable to tax, and National Insurance contributions (NICs) subject to a ‘one-off’ exemption of £100,000 of the income received from events held during a single testimonial or testimonial year.

Update

On 2 November 2017 the government announced that the introduction of the National Insurance Contributions Bill will be delayed.

The introduction of employer Class 1A NICs on Sporting Testimonial payments above £100,000 will now take effect from 6 April 2019 rather than 6 April 2018.

Source: HMRC

Detailed guide: Claim Income Tax relief for your employment expenses (P87)

Updated: Claim online link to form p87 updated.

There are different ways to claim tax relief depending on your circumstances. You need to check you’re claiming the right way before using the forms on this page. Get help choosing the right way to claim or claim by phone if you’ve made a claim for tax relief before.

Claim online

Claim using the online service.

Before you start

When you use this service, you’ll:

  • get a reference number to use to track the progress of your form
  • be able to tell us about multiple tax years and up to 5 different jobs

Include all expenses for the tax year you want to claim for. The amount shown on the service summary page is your total expenses for the year. We’ll use this to work out any relief due to you.

Gather all your information together before you start your claim.

If you’re using the service to add a new expense make sure you include anything you’ve claimed before.

If you claim an estimated amount, we’ll review it at the end of the tax year and we’ll change your tax code.

Claim by post

Only use this form if you’re claiming either:

  • on behalf of someone else
  • relief for more than 5 different jobs

If you’re using the print and post form to add a new expense make sure you include anything you’ve claimed before.

You’ll need to fill in the print and post form on-screen and send it to HM Revenue and Customs. The address is on the form.

This form is also available in Welsh.

You must fill in the print and post form fully before you can print it. You can’t save a partly completed form, so you should gather all your information together before you start to fill it in.

If you’re using an older browser, for example, Internet Explorer 8, you’ll have to update it or use a different browser. Find out more about browsers.

Claim by phone

You can claim by phone if you’ve already claimed expenses in a previous year and your total expenses are less than either:

  • £1,000
  • £2,500 for professional fees and subscriptions

Information you may need to hand when filling in the claim

Claiming more than the flat rate expense

You’ll need to have records and receipts. If your employer pays you any of the costs, deduct this from the
allowable rate.

Using your own vehicle for work

You’ll need to have records of your business mileage, including:

  • locations of your journeys
  • distances you’ve travelled
  • the total amount of mileage allowance payments you’ve had

Using a company vehicle for work

You’ll need a summary of your calculation with any claim for relief on what you’ve spent.

Hotel and meal expenses

You’ll need your receipts.

Source: HMRC