The March Rush To Beat Extra Stamp Duty On Second Homes
April 28, 2016
Our residential conveyancing team were madly busy in March making sure none of our clients missed completing their purchases before Stamp Duty increased on purchases of Buy to Let and second homes. Other firms weren't so lucky as some of their clients saw their chains collapse and missed the deadline. Changes to Stamp Duty mean that buyers completing their purchases from 1st April 2016 will pay 3% more if they own more than 1 property at completion of the transaction. So, in March, we saw new landlords and buyers of second homes rushing to complete – our team's hard work paid off and none of our clients were disappointed. THE CHANGES
|Purchase price||Pre April stamp duty rate||New rate|
|£125k - £250k||2%||5%|
- £3,750 on the first £125,000 (compared to no tax previously);
- £6,250 on the next £125,000 (compared to £2,500); and
- £800 on the next £10,000 (compared to £500)
- so new stamp duty of £10,800 instead of £3,000 on or before 31st March
- at the end of the transaction you only own one property;
- you are a first time buyer (even if it is a buy to let property)
- you sell a property known as your main residence and replace it with another property that is your main residence.
- the price is between £0 and £40k
The information contained in this article is intended for general guidance only. It provides useful information but it is not a substitute for obtaining legal advice as the articles do not take into account specific circumstances. So do please Contact US for legal advice on the issues raised.