Chartered Institute of Stockbrokers (CISI) Professional Practice Exam

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What additional percentage do individuals pay in stamp duty when purchasing a second home?

The correct answer is: 3%

When purchasing a second home, individuals are required to pay an additional stamp duty of 3% on the price of the property above the standard rates of stamp duty applicable to residential properties. This additional charge is implemented as a measure to discourage property speculation and to make housing more accessible for first-time buyers and those looking to purchase their primary residences. The calculation for stamp duty on a second home takes into consideration the price thresholds already set by the government, and the 3% surcharge is added to the usual percentage that would be calculated for the primary home. Hence, for someone buying a second home, this increased cost is significant and needs to be factored into their budgeting for the purchase.