From April 2016 any such properties will face an additional 3% charge, on top of the existing levy.
This means the new stamp duty structure in England and Wales will look like this:
Property Value | Standard Rate | Additional Properties |
£0-£125,000 | 0% | 3% |
£125,001-£250,000 | 2% | 5% |
£250,001-£925,000 | 5% | 8% |
£925,001-£1.5m | 10% | 13% |
Above £1.5m | 12% | 15% |
Stamp duty is applied only to the portion of the property value falling in that band, similar to income tax.
So while a sole home valued at £300,000 would incur £5,000 stamp duty, if that same £300,000 were an additional Buy to Let property for example, the stamp duty charge would increase to £14,000.