One of the issues identified by the previous government is the difficulty which younger people have in getting onto the property ladder; and part of that government’s solution has been to introduce a tax on second homes, which came into force on 1 April 2016. This takes the form of a surcharge of 3% on the existing Stamp Duty Land Tax and Land Building Transaction Tax. So a second property worth £300,000 would incur a whopping extra charge of £9,000!
The surcharge affects holiday homes, buy-to-let and sometimes even a main residence. It even extends to properties abroad. However, homes valued at less than £40,000, caravans, mobile homes and houseboats are exempt.