Stamp Duty Changes: How Will it Affect You?

Published on 17 March, 2016

As you must be aware, the rules regarding how much stamp duty you pay will be changing on April 1st, but what does that mean for you? The new rules include an additional 3% surcharge on second homes and buy to let properties which has understandably caused a panic for property investors over the last few months.

How Much Are The New Charges?

If you’re buying a second home that is under the new threshold of £40,000 then the rules will not apply, but let’s face it, that’s not very likely is it? Listed below are all of the bands for you to work out how much you will pay:

Bands Standard Rate NEW 2nd home/buy to let rate
Below £40,000 0% 0%
Up to £125,000 0% 3%
£125,001 - £250,000 2% 5%
£250,001 - £925,000 5% 8%
£925,001 - £1.5m 10% 13%
Above £1.5m 12% 15%

Existing Home Owners

  • As long as you complete before April 1st then these new changes will not apply to you.
  • If contracts were exchanged before the announcement on November 25th 2015 but your completion date will not be until after the rule change, this will not apply as you entered into a contract unaware of the new charges.
  • Owners of a second home/buy to let who have sold their main home will have 36 months to buy a new one before the extra charges apply.

This is just an overview so If you have any other queries or concerns regarding this matter then please feel free to give our team a call on 0333 666 7699.

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