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Stamp duty changes come into effect

New stamp duty rates for people investing in buy-to-let property and second homes came into force on 1 April 2016.

Individuals who purchase a second home or buy-to-let investments will have to pay a 3% surcharge on additional property over £40,000. 

The new charge will likely have an effect on additional property purchase costs with new rates payable on a house costing £275,000 rising from £3,750 to £12,000.

Stamp duty rates

The following rates will apply when purchasing an additional property over £40,000:

Property price

New rates (1 April 2016)

*£0 - £40,000

0%

**£0 - £125,000

3%

£125,001- £250,000

5%

£250,001- £925,000

8%

£925,001 - £1.5m

13%

£1.5m +

15%

 *Property price £40,000 or less.

**Property price over £40,000.

Land and Buildings Transaction Tax (LBTT)

Rate changes also come into force for those seeking to purchase buy-to-let properties in Scotland. The following LBTT rates will be charged on buying a property as your primary residence for over £145,000.

Property price

New rates (1 April 2016)

*£0-£40,000

0%

**£0 - £145,000

3%

£145,001 - £250,000

5%

£250,001 - £325,000

8%

£325,001 - £750,000

13%

£750,001+

15%

 *Property price total is £40,000 or under.

**Property price total is over £145,000.

These rates also apply to second homes and holiday homes.

Talk to us today to found out more on stamp duty.