From the 1st of April 2016, the government will introduce a new Stamp Duty levy which will be payable when you purchase an additional home in the UK, whether a holiday home or buy-to-let.
The surcharge will apply even if the home you already own (or part-own) is overseas.
The new Stamp Duty rates for additional properties will be:
|Purchase Price||Current Rate||New Rate|
|Over £40,000 and up to £125,000||0%||3%|
|Between £125,001 and £250,000||2%||5%|
|Between £250,001 and £925,000||5%||8%|
|Between £925,001 and £1.5 million||10%||13%|
|Over £1.5 million||12%||15%|
For an example, if you bought an additional property at a price of £200,000:
- The extra 3% Stamp Duty = £6,000 (3% of the entire price)
- Regular Stamp Duty bill = £1,500
- Total to pay = £7,500
What to look out for…
- If you directly replace your main residence with a new home, you won’t have to pay the 3% surcharge
- If you move into a new home and keep your last home you will initially have to pay the 3% Stamp Duty. As long as you sell your last home within 36 months, HMRC will make a refund.
- If you are buying a home with someone who already owns one, the additional 3% Stamp Duty will apply.
Source: HMRC, March 2016,
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