Supplemental 3% Stamp Duty Land Tax

When is supplemental 3% Stamp Duty Land Tax payable?

As a firm, we have noticed clients being caught out by the above, following incorrect advice received by them before consulting us.

A married couple, or couple in a civil partnership who already own a property (main residence) and sell it to buy another property are exempt.

If, however, they buy a new property before selling the existing main residence, they are caught by the additional 3% but can claim it back if the old main residence is sold within 3 years of buying the new property.

What if you own property abroad?

Please remember that if you own a property abroad, this is taken into account when buying a property in England, Wales or Northern Ireland.

Similarly, be careful if one of a married couple or one civil partner already owns a property before they buy one jointly, or even in one of their names.  You risk being caught out by the additional duty.  A claim for a refund is possible, but the facts must be looked into carefully.

What if parents help children to buy a property?

The problem also hits parents helping children, where the parents’ name is on the deeds, in addition to the children, on the property purchased.  Unmarried couples can get caught out if following a purchase of the property (and neither owned a property previously) there is a transfer from one name into joint names.

This subject used to be a fairly simple tax, but that is simply no longer the case and it has helped the taxation collected from individuals considerably, so far as the Government is concerned.


This blog published by T A Matthews is for information purposes only and is not considered legal advice on any subject matter.  The blog should not be used as a substitute for legal advice from a solicitor, and readers should consult their own solicitor on any specific legal questions concerning a specific situation.