From 1 April 2016 higher rates of SDLT apply to the purchase of additional residential properties (such as second homes and buy-to-let properties) for chargeable consideration exceeding £40,000 with effect. The higher rates are 3% above the current SDLT rates for residential property.
The article below raises an issue with the exemption that applies for people who had more than one home but were replacing their main residence. Here we have a landlord who was renting their main residence and the exmption, therefore, didn't apply. Something else for landlords to watch out for.
As the law is drafted, a landlord who lives in a house rented from someone else who then decides to buy a home to live in is subject to the additional 3 per cent SDLT on that purchase. That applies even though he is in fact replacing his — albeit rented — main residence.