Simon Howley looks at the supplemental 3% stamp duty land tax charge on purchases of additional residential properties in England and Northern Ireland.
The supplemental 3% stamp duty land tax (SDLT) charge (commonly known as the ‘supplemental charge’) applies to purchases of additional residential properties in England and Northern Ireland, such as buy-to-let and inherited property in common family situations. Transactions to which the supplemental charge applies are also known as ‘higher-rate transactions’.
There are several references in this article to major interests in a dwelling. For the supplemental charge, a major interest in a dwelling is an estate in fee simple absolute (a form of freehold estate) or a term of years absolute of more than seven years (a form of leasehold estate), whether subsisting in law or equity (FA 2003, s 117).
