Higher stamp duty tax for buy-to-let properties and holiday homes in Jersey

Credit PA Images
The change will be included in the Government Plan and come into action no later than 31 December 2022. Credit: PA Images

Jersey will bring in higher stamp duty tax for buy-to-let investment properties, second houses and holiday homes.

The States Assembly voted to approve the amendment brought forward by the island's Corporate Services Scrutiny Panel.

The amendment says a 2% surcharge is fair, which would see purchases between £500,001 and £700,000 charged 5% stamp duty - rather than the current 3%.

In real terms it means a £700,000 house would incur an extra £14,000 in stamp duty.

This rate increases with the cost of the property.

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The change will be included in the Government Plan and come into action no later than 31 December 2022.

Jersey's Treasury and Resources Minister, Deputy Susie Pinel, had asked for any change to come after a stamp duty review but this amendment was rejected.

The decision comes after average house prices in Jersey increased by 18% in a year.