Stamp Duty Rates
Are you concerned about the higher rates of Stamp Duty Land Tax (SDLT) which will take effect from 1 April 2016?
The Government has now closed its consultation on their plans to increase the rate of Stamp duty payable on the purchase of additional residential properties.
They are due to announce the final policy details during the Budget taking place on 16 March 2016, with the higher rates of SDLT applying from 1 April 2016.
Applying the new rates, the Stamp Duty payable on purchases of second homes will be as follows;
No stamp duty payable on a purchase price up to £40,000
Additional 3% payable on a purchase price between £40,000 and £125,000
Additional 5% payable on a purchase price between £125,000 and £250,000
Additional 8% payable on a purchase price between £250,000 and £925,000
Additional 13% payable on purchase prices between £925,000 and £1.5m
Additional 15% payable on purchase prices above £1.5m
Crucially, the higher rates will not apply where somebody is replacing a main residence, even if they own more than one property.
A re-imbursement of any higher SDLT paid can be sought where somebody buys a new main residence and sells their old main residence within 18 months.
If you require any further advice please contact a member of our property team on 01282 433241 (Burnley) or 01282 864500 (Colne)