If you are buying a second or subsequent home from 1 April 2016 you will face an additional 3% charge on stamp duty.
The changes to stamp duty, which were announced by the Chancellor in his autumn budget, will affect those purchasing a second property where the value is over £40,000.The new rates will apply to anyone who is buying additional residential properties where they already own a property, even if this property is abroad.
The table below shows the new rates from 1 April 2016.
*Transactions under £40,000 do not require a return to be submitted to HMRC
Would your purchase attract the additional rate?
See the following diagram to find out if you would have to pay the additional rates:
Source: Open consultation; Higher rates of Stamp Duty Land Tax (SDLT) on purchases of additional residential properties – www.gov.uk, 28 Dec 2015. Copyright HM Treasury.
What are your options if the additional tax applies?
- Act quickly and ensure completion of the additional purchase takes place before 1 April 2016.
- Purchase a property that is under £40,000.
- Consider options other than buying another property.
- Continue with your purchase as planned and pay the additional rate.
Whichever option you chose ensure that you are getting the right advice. Speak to one of our Conveyancing experts on 0800 138 0458 or email firstname.lastname@example.org.
Disclaimer: The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice, and the law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice on their own particular circumstances.