Thinking of buying a second property? Be aware of the upcoming Stamp Duty changes!
On 25th November 2015, The Chancellor, George Osborne, delivered his Autumn statement. The statement brought shocking news for those thinking of buying a second property.
An increased Stamp Duty Land Tax (SDLT) rate, at an additional 3% over the current charge, will apply on the purchase of a second property. When will it apply? The increased SDLT rate will apply on completions which take place on or after 1st April 2016, unless contracts were exchanged on or prior to 26th November 2015.
Even if you buy a property before selling, the new SDLT rates will apply but you can claim a refund if the sale completes within 18 months.
No SDLT is payable on properties with a purchase price of £40,000 or under.
What are the rates? Please see the table below.
|Property or lease premium or transfer value||Existing SDLT rate||New additional SDLT rate|
|Up to £125,000||Zero||3%|
|The next £125,000 (the portion from £125,001 to £250,000)||2%||5%|
|The next £675,000 (the portion from £250,001 to £925,000)||5%||8%|
|The next £575,000 (the portion from £925,001 to £1.5 million)||10%||13%|
|The remaining amount (the portion above £1.5 million)||12%||15%|
Who is affected? The answer is simple. Everyone who owns more than one residential property. Whether you are buying a holiday home, a Buy to Let investment or accommodation for a family member, the additional rate will apply.
What is the impact? Is now the time to sell and attract those investment buyers or to buy your second property before the changes come into force?
If you require assistance with either buying or selling a property or any other kind of conveyancing matter then Contact Emery Johnson Astills today on 0116 255 4855 for fast, efficient, cost-effective conveyancing.