Everything you need to know about Stamp Duty Changes
From April 2016 the Government will be reclassifying stamp duty land yax (SDLT) for anyone purchasing an additional property. If you’re a land owner or you’re looking to buy an additional property in England, Wales and Northern Ireland, you’re going to be paying a SDLT rate that’s 3% higher than the standard rate.
Who will be affected by this change?
If you own a second property, be it for a holiday home or as a buy-to-let you will be liable to these higher rates. If you’re replacing your main residence with a new property, but your previous main residence has not yet been sold, your transaction will also be subject to the higher rates. However, if your current main residence is sold within the next 18 months, you will be eligible for a refund.
It will only affect additional property purchases on or after 1st April 2016.
What are the new rates?
The stamp duty increase will be in line with the value of a property. If your second property is worth between £0 and £125k the proposed additional rates will be an additional 3%. For properties valued between £925,001 and £1.5m will be paying a 13% SDLT. To view all the proposed stamp duty changes, visit https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro
At this stage, these costs are only proposed as the final rules will be announced in the budget on 16th March 2016.
Are there any exemptions?
There are some properties that won’t fall under the stamp duty charges. They include caravans and houseboats, properties worth less than £40,000 and charities and registered social landlords. The government is also proposing to exempt corporates, funds and significant investors that own over 15 properties.
If you’d like to know more about the stamp duty rate changes or how this will affect you, get in touch with our team here http://www.morrisarmitage.co.uk/contact-us.php