Stamp Duty changes this April 2016

March 16th 2016
By: Melanie
Stamp Duty changes this April 2016

Last year in his Autumn Statement the Chancellor made some substantial changes to the amount of Stamp Duty property investors will have to pay when purchasing a second home or a buy to let property as from 1 April 2016. From this date all second properties or Buy to let investments will attract an additional 3% stamp duty charge, for a property worth £40,000 or more.
The final details of the increase in SDLT, Stamp Duty will be released this week, when they are expected to be delivered in the Budget.
If a buyer is looking to purchase a buy to let property, and it is their first property then the higher SDLT rate should not apply as it will be their first home.
If you are married or you have a civil partner and one of you own a property then you will have to pay the higher rate of stamp duty.
If you are looking helping your children buy a second home and you simply help them with the deposit or act as a guarantor then the higher rate stamp duty does not apply.
New Stamp Duty rates:
Band                       Normal Rate      Additional property
less than £125k              0%                           3%*
£125k to £250k               2%                           5%
£250k to £925k               5%                           8%
£925k to £1.5m             10%                          13%
Over £1.5m                   12%                          15%
* For additional property the first £40k will attract 0% tax. From £40k to £125K the rate will be 3% on full purchase price
If you are confused about how much stamp duty you will have to pay when purchasing a second property why not contact your local branch of Intercounty or call us on 0844 8111090.