From 1 April 2016 anyone buying a second home for any reason will pay a higher rate of stamp duty than someone buying a property which will be their main home.

What is stamp duty?

Stamp duty – or more precisely stamp duty land tax (SDLT) – is a tax paid by homebuyers when they buy property or land. On your main home the tax is paid if the purchase price is over £125,000. The amount paid is assessed on a tiered basis.

How much stamp duty will I pay on my new home?

You can find out exactly how much you need to pay using a stamp duty calculator like this one.

To give you an idea, on a house costing £100,000 that you plan to live in there would be no bill to pay. On a £200,000 property you would pay £1,500, and if you were spending £350,000 on a new home you would pay £7,500. Someone buying a £1m home would face a bill of £43,750.

Any second homes attract a higher rate.

What counts as a second home?

Anything other than your main residence – it could be a holiday let, a property bought as an investment or somewhere you are helping another family member to buy.

This surcharge will also apply even if the main home you currently own is overseas.

I plan on buying a second home. How much extra stamp duty will I pay?

You will pay the duty on any property costing £40,000 or more. For each tier you would pay a rate three percentage points higher.

Take a look at the calculator and full post here