A reform of residential property Stamp Duty Land Tax announced by the Chancellor in his Autumn Statement means that purchasers of buy to let properties and second homes will be faced with increased Stamp Duty as of 1 April 2016.
Buyers will have to pay an additional 3% on each Stamp Duty band where the purchase price is £40,000 or more. It is not just landlords that will be hit by the increase, but anyone owning a second home. This could be parents buying a property for their children or a couple purchasing a home together where one is already a homeowner.
Anyone owning a second property that isn’t their main residence and buying another, or replacing the one they don’t live in, is likely to get caught up in the changes.
Over the last few months we are seeing many of our investor clients making additions to their existing portfolio in order to save on the new charges which will be finalised at this year’s Budget.
An illustration of how the increased charges may affect you.