From 5th April 2016, Stamp Duty Land Tax will increase by 3% on top of current rates, for purchases of additional residential properties, such as buy to let properties and second homes.
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Property value
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Stamp duty rate for owner-occupiers
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Stamp duty rate for second property/buy-to-let
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Up to £125,000
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Zero
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3%
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The next £125,000 (the portion from £125,001 to £250,000)
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2%
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5%
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The next £675,000 (the portion from £250,001 to £925,000)
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5%
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8%
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The next £575,000 (the portion from £925,001 to £1.5 million
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10%
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13%
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|
The remaining amount (the portion above £1.5 million)
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12%
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15%
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For those of you unware of the new proposed changes in stamp duty tax we have highlighted the rates for your interest.
The tax will affect the buy to let landlords and those of you searching for a second home. This news has attracted an increasing number of investors to buy before the increase stops investors from generating a profitable income.