Stamp duty changes – in a nutshell…

3 05 2016

From 1st April 2016 anyone who buys additional residential property, including second homes and Buy to Let (BTL), must pay an extra 3% in stamp duty.

The additional charge applies above previous “stamp duty land tax” rates. This means there will be 3% ta (formerly zero) to pay on homes worth up to £125,000, 5% tax (instead of 2%) on homes costing between £125,001 and £250,000, and 8% (formerly 5%) on homes worth between £250,001 and £925,000

Homes worth up to £1.5m will be subject to 13% stamp duty and those over this amount will incur a 15% charge. As an example, if someone buys a £450,000 house they will be liable for an extra £13,500 in tax.

Anyone buying a second home has 36 months to sell the original property. They can then get a refund on the extra tax.

In addition, anyone who sold their home before November 2015, but does not currently own their own home, has until November 2018 to buy a new one without paying the extra tax.

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