Chartered Institute of Stockbrokers (CISI) Professional Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the CISI Professional Practice Exam with comprehensive quizzes. Enhance your knowledge through flashcards, multiple choice questions, detailed hints, and thorough explanations. Get exam ready today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

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.