Sarah Bradford looks at what the increase in the SDLT supplement will mean to those purchasing second and subsequent residential properties.
Tax policy has long been used to drive behaviour, whether this is to encourage behaviours viewed as desirable, or to discourage those viewed as less desirable.
In the current climate of housing shortages, a raft of tax and stamp duty changes in recent years have conspired to curtail the purchase of residential properties for use other than as a main home, such as buy-to-let properties, holiday lets and second homes. These include the restriction of interest rate relief for unincorporated landlords, changes to the capital gains tax (CGT) treatment of residential gains and the end of the favourable tax regime for furnished holiday lettings. This trend continued in the October 2024 Budget.
Against expectations, the Chancellor chose not to raise the rate of CGT for
