New stamp duty rates for people investing in buy-to-let property and second homes came into force on 1 April 2016.
Individuals who purchase a second home or buy-to-let investments will have to pay a 3% surcharge on additional property over £40,000.
The new charge will likely have an effect on additional property purchase costs with new rates payable on a house costing £275,000 rising from £3,750 to £12,000.
Stamp duty rates
The following rates will apply when purchasing an additional property over £40,000:
|
Property price |
New rates (1 April 2016) |
|
*£0 – £40,000 |
0% |
|
**£0 – £125,000 |
3% |
|
£125,001- £250,000 |
5% |
|
£250,001- £925,000 |
8% |
|
£925,001 – £1.5m |
13% |
|
£1.5m + |
15% |
*Property price £40,000 or less.
**Property price over £40,000.
Land and Buildings Transaction Tax (LBTT)
Rate changes also come into force for those seeking to purchase buy-to-let properties in Scotland. The following LBTT rates will be charged on buying a property as your primary residence for over £145,000.
|
Property price |
New rates (1 April 2016) |
|
*£0-£40,000 |
0% |
|
**£0 – £145,000 |
3% |
|
£450,001 – £250,000 |
5% |
|
£250,001 – £325,000 |
8% |
|
£325,001 – £750,000 |
13% |
|
£750,001+ |
15% |
*Property price total is £40,000 or under.
**Property price total is over £145,000.
These rates also apply to second homes and holiday homes.
Talk to us today to found out more on stamp duty.
This material is for informational purposes only and should not be relied upon as professional advice.
