1 George Street, Huntingdon
Cambridgeshire, PE29 3AD
Last year in his Autumn Statement the Chancellor, George Osborne, made some substantial changes to the amount of Stamp Duty buyers will have to pay when purchasing a second home or a buy to let property as from 1 April 2016.
In layman’s terms, from this date all second property purchases will attract an additional 3% stamp duty charge, unless it is worth 40,000 or less.
If a buyer is looking to purchase a buy to let property, and it is their first property then the higher SDLT rate should not apply as it will be their first home.
If you are married or you have a civil partner and one of you own a property then you will have to pay the higher rate of stamp duty.
If you are looking helping your children buy a second home and you simply help them with the deposit or act as a guarantor then the higher rate stamp duty does not apply.
New Stamp Duty rates:
| Band | Normal Rate | Additional Property |
|---|---|---|
| less than £125k | 0% | 3% |
| £125k to £250k | 2% | 5% |
| £250k to £925k | 5% | 8% |
| £925k to £1.5m | 10% | 13% |
| Over £1.5m | 12% | 15% |
If you are confused about how much stamp duty you will have to pay when purchasing a second property please feel free to contact our office on 01480 458 762 or enquiries@ojproperty.co.uk to discuss further.