Over recent weeks there has been much debate over the SDLT surcharge for second homes. Many people are shocked to discover that what they though was helping children or other relatives to get on the housing ladder would in fact lead to increased Stamp Duty on the whole purchase price. Unsurprisingly this is not popular with "hard working families" - you know who you are!
Since the start of April, anyone buying a home with a granny flat could have found themselves hit by an inflated stamp duty bill. They would have been caught up in the government’s move to get landlords and those who own second homes to contribute more to the Treasury’s coffers by way of a 3 per cent stamp duty surcharge. The planned rate varied between 3 per cent and 15 per cent of the sale price, depending on the property’s value. For example, a property with an annexe – the proper name for a granny flat – with an overall sale price of £500,000 would incur a new stamp duty bill of £30,000, compared to the £15,000 it previously cost.