stamp duty changes

Who pays Stamp Duty?
Currently Stamp Duty is paid by the buyer, anyone purchasing a property in England, Wales and Northern Ireland.This includes overseas buyers.


So what is changing then?
From the 1st April 2016 a 3% surcharge will apply to purchases of buy to let property and second homes.

 

                                                                        Stamp Duty

Purchase Price

First Home

Buy to Let/ Second

£30,000ZeroZero
£40,000Zero£1,200
£50,000Zero£1,500
£80,000Zero£2,400
£100,000Zero£3,000
£125,000Zero£3,750
£150,000£500£5,000
£175,000£1,000£6,250
£200,000£1,500£7,500
£300,000£5,000£14,000
£500,000£15,000£30,000
£750,000£27,500£50,000
£1,000,000£43,750£73,750

                       Figures for England and Wales only. Scotland has different stamp duty rates.

 

If the property is purchased as an additional property (i.e. the buyer will have 2 or more properties) and the purchaser
has not sold their previous main residence, they may have to pay 3% of the total purchase price, plus the current
stamp duty rates.

 

I am thinking of selling and it is likely that a buyer would use the property as a holiday home or a rental property?

Consider putting your property onto the market now as there are buyers looking.  To help sellers we have a special auction contract for our Auction with a special sales fee.  If you sell your property via the unconditional route your solicitor will prepare a legal pack and allow your buyer to exchange contracts immediately with completion within 28 days which should mean that the transaction goes through more quickly.

What should I do if I am thinking of buying a second property?

If you are thinking of buying a property and you are not intending to sell your current main residence, then you should be making sure that you have everything in place to complete before the 1st April otherwise you may have to pay the additional stamp duty. Check with your solicitor to see if you will be liable to pay the additional stamp duty

You can use HM Revenue and Customs (HMRC) Stamp Duty Land Tax calculator at www.hmrc. gov.uk property to work out how much tax you’ll pay. (There’s a different calculator for leases.)

More than one property (‘multiple dwellings’)

An accountant or experienced conveyancer will be able to advise you best. We can put you in touch with our conveyancers if you like. HMRC Open Government Licence (Source)