Are you a landlord or buying a second home? If yes, then you may be affected by the recently announced changes to the Stamp Duty Land Tax (SDLT) that will begin on 1st April 2016.
From April next year the SDLT for additional residential properties will go up by 3%*. This higher rate will be charged on purchases above £40,000 and will not apply to purchases of caravans, mobile homes or houseboats.
Stamp duty rates
| Band | Normal Rate | Additional Property* |
| Less than £125K | 0% | 3%** |
| £125K – £250K | 2% | 5% |
| £250K – £925K | 5% | 8% |
| £925K – £1.5m | 10% | 13% |
| Over £1.5m | 12% | 15% |
*Higher stamp duty rates for additional property from April 2016.
**For properties under £40,000 there will be no tax. Properties over £40,000 will be taxed 3% on the full purchase price.
The government intends to use some of the additional tax collected to provide £60 million for communities in England get on the property ladder.
If you have any questions about how this might impact you, contact us today!