A 3% stamp duty surcharge on the purchase of additional residential properties came into effect on 1 April 2016. The surcharge is an extra 3% charge payable on the purchase price of additional residential property in England, Wales and Northern Ireland. It applies on top of the existing tax charge for residential property transactions.
The surcharge is payable by individuals buying second and subsequent residential properties and also by companies on their first and subsequent purchases. Note that an interest in an overseas dwelling counts for the purposes of establishing whether a purchase is a purchase of a second dwelling.
The key exception for individuals is where they are replacing their main residence. In that case, a claim for repayment of the surcharge can be made where the previous main residence is retained but sold within three years of the purchase of the new main residence.