The Chancellor’s Budget has today confirmed the government’s announcement in the Autumn Statement 2015 that from 1 April 2016, higher rates of Stamp Duty Land Tax (“SDLT”) will apply to purchases of additional residential properties, such as second homes and buy-to-let properties.
The higher rates will be three percentage points above the current SDLT rates and will apply to purchases of additional residential properties in England, Wales and Northern Ireland.
The new rates
which will affect property purchases from 1 April 2016 are as follows:
- Below £125,000: 3% (currently 0%)
- Between £125,000 - £250,000: 5% (currently 2%)
- Between £250,000 - £925,000: 8% (currently 5%)
- Between £925,000 - £1.5 million: 13 % (currently 10%)
- The remainder: 15% (currently 12%)
Our Property team would be happy to advise you if you have any queries about how this might affect your current plans. Please contact Melissa Richards at firstname.lastname@example.org or call 01603 660 811.
Please reference point 3.20 of the government’s Budget 2016 Policy Paper for more information.