As of 1 April 2016, Stamp Duty Land Tax rules changed for those buying additional residences. Announced in the Chancellor of the Exchequer’s Autumn Statement, a 3% increase has been added to existing SDLT rates.
These changes affect those buying properties in England and Wales that are in addition to the purchaser’s main residence. The costs are still incurred if you already own property outside of the UK.
Stamp Duty is charged on a tiered system, with the amount owed dependent on the purchase price of the property. The additional 3% surcharge is added on top of the existing rates.
For example, purchasing a main residence for £500,000 will incur the following rates of Stamp Duty: 0% on the first £125,000, 2% on the amount between £125,000 and £250,000, and 5% on the amount above £250,000. If this purchase was in addition to the buyer’s main residence, these rates would increase to 3%, 5% and 8% respectively.
For help calculating the amount of SDLT that you might owe use our Stamp Duty calculator.
To find out more about paying Stamp Duty, speak to one of our experts at Londonwide Conveyancing.
If you are purchasing a leasehold property your stamp duty charges may vary. To find out more, speak to a member of our Chartered Surveyors team.