New law: Extra 3% stamp duty proposed on second homes and buy-to-lets

Thursday 14th January 2016

 

Individuals buying second or buy-to-let homes from 1 April 2016 should prepare to pay an additional 3% stamp duty.

 

The Chancellor has proposed that individual buyers of second homes and/or buy-to-let properties will pay an extra 3% stamp duty above the current rates, on purchases from 1 April 2016. The new rules apply throughout all parts of the UK except Scotland.

 

For example, on a purchase of a main residence for between £125k and £250k the current rate is 2%. If a second or buy-to-let home is bought by an individual between £125k and £250k, the new rate will be 5%.

 

The extra stamp duty is only payable by individuals, and where the purchase price is more than £40,000.  Purchases through a limited company are not affected.  There are also exceptions if the purchase is of a caravan, mobile home or houseboat.

 

Operative date

  • Now

 

Recommendation

  • Individuals proposing to buy second or buy-to-let homes from 1 April 2016 should monitor the proposals, and consider the impact of paying extra stamp duty

 

 

© Atom Content Marketing 2016

 

Author: Richard Ainsworth

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