The Stamp Duty Land Tax has increased on 1st April 2016. It has increased by 3% on most purchases on property for second homes or buy to lets worth over £40,000.
Who will have to pay the higher rate of Stamp Duty Land Tax?
In general, if you are selling your main residence to purchase another main residence and both transactions are completed on the same day, the higher Stamp Duty Land Tax won’t apply.
But…
If you are buying a second or third property, the higher Stamp Duty Land Tax may apply.
What does this mean?
Since the 1st April 2016, the Stamp Duty Land Tax has increased significantly. For example:
1. Purchase Price = £75,000
Stamp Duty Land Tax Pre 1st April = £0
Stamp Duty Land Tax post 1st April = £2250
2. Purchase Price = £150,000
Stamp Duty Land Tax Pre 1st April = £500
Stamp Duty Land Tax post 1st April = £500
3. Purchase Price = £350,000
Stamp Duty Land Tax Pre 1st April = £7500
Stamp Duty Land Tax post 1st April = £18,000
As you can see this is a significant change and can be quite confusing. If you would like more information regarding the Stamp Duty changes, please contact AMG Mortgages in Stafford today!
