Stamp duty for second homes
An increase to stamp duty rates applied to second property purchase was finalised in the 2016 budget. This will effect any residential property that doesn’t complete its sale before midnight 31st March 2016.
In November 2015 the government spending review announced a five point housing plan to support low-cost home ownership for first-time buyers. The increase in stamp duty for additional residential property purchases is intended to reduce the amount of buy-to-let landlords in the lower end of the property market, thus freeing up low-cost properties for first time buyers.
Stamp duty land tax (SDLT) is a mandatory tax paid when buying a freehold or leasehold property in England, Wales and Northern Ireland.
Second property purchase rates have been inflated by 3% across the board which is shown in the table below:
|Property or lease premium or transfer value||Standard residential rate||Second property purchase|
|£250,001 – £925,000||5%||8%|
|£925,001 – 1.5m||10%||13%|
Stamp duty for a traditional residential property purchases has not changed, for example a first time buyer or those who are purchasing a new primary home will not be subject to the increased rates.
Stamp duty is payable on residential property over £125,000 and £150,000 for non-residential land and property. HMRC have created this online calculator to help determine how much stamp duty is required dependent on the value of the property.
A RICS regulated valuer is qualified to provide property valuation figures; contact our team at email@example.com to determine how much your property is worth.
Visit https://www.gov.uk/stamp-duty-land-tax/overview for a simple overview and more information on Stamp Duty.