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

 

Example:

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?

 

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