Changes to Stamp Duty Rates for Second Homes and Investment Properties!

From the 1st April 2016, stamp duty rates will increase for anyone purchasing their second home or a buy-to-let property.

Only properties purchased for under £40,000 will avoid a minimum rate of 3%. For all second homes and investment properties purchased for more than £40,000, the minimum rate of 3% will apply to the entire purchase price and will increase in line with the purchase price. The new rates are set out below:

Purchase Price of £40,000 or under – 0%

Purchase Price of £40,000 to £125,000 – 3% on the entire price, for example a purchase price of £100,000 would attract SDLT of £3,000

Purchase Price of £125,000 to £250,000 – 3% on the first £125,000 and 5% on the remaining balance. For example, a purchase price of £200,000 would attract stamp duty of £7,500

Purchase Price of £250,000 to £925,000 - £3% on the first £125,000, 5% on the next £125,000 and 8% of the purchase price thereafter. For example, a purchase price of £500,000 would attract SDLT of £30,000

Purchase Price of £925,000 to £1.5m – 3% first £125,000, 5% second £125,000, 8% on the next £675,000 and 13% on the balance. For example, a purchase price of £1m would attract SDLT of £73,750.00

Purchase price of over £1.5m - 3% first £125,000, 5% second £125,000, 8% on the next £675,000, 13% on next £575,000 and 15% on remainder. For example, a purchase price of £2m would attract SDLT of £213,750.00