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Stamp Duty Surcharge

Stamp Duty Surcharge

Stamp Duty Surcharge

Chancellor George Osborne announced on Wednesday that buy-to-let and second home properties will be subject to an additional 3% stamp duty from next April.

The higher rates will not apply to purchases of caravans, mobile homes or houseboats, or to corporate entities or funds making significant investments in residential property. The government will consult on the policy detail, including on whether an exemption for corporate entities and funds owning more than 15 residential properties is appropriate.

Value of second property/buy to let (£)

Current SDLT (£)

SDLT from 1 April 2016 (£)

Increase in tax (£)

150,000

500

5,000

4,500

250,000

2,500

10,000

7,500

350,000

7,500

18,000

10,500

450,000

12,500

26,000

13,500

 

Existing and would-be landlords are set to go on a buy to let buying spree, snapping up homes before the three per cent stamp duty surcharge kicks in next April - but then the rot may set in and demand may plummet.

 
Rebecca Hutton
Written by

Rebecca Hutton

Lettings Negotiator

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