26 Feb

BUY-TO-LET STAMP DUTY CHANGES

Changes to stamp duty on buy to let properties

The government are set to increase the stamp duty on buy to let properties on 1st April 2016, the increases are going to have a marked effect on the buy to let housing market.

Currently buy to let investors are trying to get their house purchases though before the deadline to avoid the extra charges, with one month to go before the new charges come into effect
many buyers will find themselves having to find the extra funds on a property that does not complete before the deadline.

Table of new charges as of 1st April 2016

£000,000       To    £125,000             3%
£125,000       To    £250,000             5%
£250,000       To    £925,000             8%

As an example a buy to let property being bought for £300,000 will attract a Stamp duty charge of  £14,000 as off April 2016

The aim in increasing the stamp duty is to suppress the buy to let market and try to attract more first time buyers into the housing market.

 

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.