New stamp duty takes effect
Apr 17, 2016
From April this year stamp duty tax has increased for all buy to let and second home purchases.
A 3% surcharge will be applied and a new £40,000 threshold will be introduced.
The change aims to free up housing for buyers, it also means anyone owning a second property that isn't their main residence and buying another or replacing the one they don't live in, will be liable for the new charges.
Current calculation for buy to let and second home purchase stamp duty:
No stamp duty on the first £125,000
2% £125,001- £250,000
5% £250,001 - £500,000
From April 2016 the new calculation will be:
3% £40,000 - £125,000
5% £125,001 - £250,000
8% £250,001 - £500,000
A £175,000 buy to let/second home purchase.
Current stamp duty tax = £1,000
April 2016 stamp duty tax = £6,250
At Stephen Rea Estate Agents we would like to know what are you're thoughts? Will you be affected?