Date Published 02 December 2015
Thinking/planning to purchase a buy-to-let property or a second home? After April 1st 2016 you will face a higher stamp duty tax bill.
What are the changes? Under new rules, 3 per cent will be added to every single stamp duty band for buy-to-let and second homes. To give you an idea of the numbers, if you bought a property of up a £275,000, the current rate of stamp duty means a £3,750 stamp duty bill. How this is worked out: 0% on the first £125,000= £0 2% on the next £125,000= £2,500 5% on the final £25,000= £1,250 Total stamp duty to pay= £3,750
But by adding the 3 per cent surcharge this will see the price of tax rocket for landlords! 3% on the first £125,000= £3,750 5% on the next £125,000= £6,250 8% on the final £25,000= £2,000 Total NEW stamp duty to pay=£12,000
The next 3 months are vital for searching and buying properties if you have this in mind. VA are here to help with growing your portfolio and advising you for FREE!