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.