Need to Know Guide - Rise in Stamp Duty Land Tax Charges
On 1 April 2016, Stamp Duty Land Tax (SDLT) rates were raised on purchases of additional residential properties in England, Wales, and Northern Ireland.
So if you are buying an investment property or a second home which does not replace your main residence you will now pay more SDLT.
- The new rates will be 3% higher than the previous rates. The SDLT payable on a property purchased at £200,000, for example, will increase five-fold from £1,500 to £7,500.
- This will affect landlords buying properties for buy-to-let portfolios and also parents who are buying a new home for their children.
- The vast majority of transactions however, including first time buyers purchasing their first property, or home owners moving from one residence to another will be unaffected and the previous existing rates of SDLT will still apply.
What to do next
If you are buying or selling a new residential property, either as your home or as an investment, contact our residential property team on 0117 925 2525 for advice.