Stamp Duty Increase from 1 April 2016
18/1/16
Topic: House Buying
Following the announcement in the Government’s Spending Review and Autumn Statement in November last year, George Osborne confirmed that there will be an increase of stamp duty land tax (SDLT) payable for those who already own a property and are purchasing an additional residential property, such as a buy to let property or a second home.
In short, purchasers obtaining an additional residential property in the UK (excluding Scotland) will incur a 3% surcharge payable above the current SDLT rates, which will remain on the recently revised ‘sliding scale’. The higher rates will become payable for any properties worth over £40,000 and will not apply to the purchase of caravans, mobile homes or houseboats.
New stamp duty rates – for additional property purchase
| Purchase Price | Current Stamp Duty | Stamp duty for additional property purchases |
| Up to £40,000 | 0% | 0% |
| Over £40,000 – £125,000 | 0% | 3% |
| Over £125,000 – £250,000 | 2% | 5% |
| Over £250,000 – £925,000 | 5% | 8% |
| Over £925,000 – £1,500,000 | 10% | 13% |
| Over £1,500,000 | 12% | 15% |
Many recent news articles do make reference to this mainly impacting those purchasing a buy to let property, however this will also affect those who may be considering purchasing a new residential home without selling, whilst retaining the existing property as a buy to let.
For more information on the changes which are due to come into force from 1st April 2016 and whether these changes will affect you, please contact us to arrange an appointment on 01275 861014 or email us at advice@openvisionfinance.com.
