From 1 April, 2016 anyone purchasing another property will have to pay an extra 3% Stamp Duty if this is a ‘second home’.
This relates to anyone who is buying additional residential properties, for example buy-to-let or holiday homes within England, Wales, and Northern Ireland. Be aware that this stamp duty increase will apply even if the home you already own is overseas. Therefore if you have another main residence or holiday home in another country and are buying your first home in the UK, you would still be subject to the new stamp duty increases.
However, if you are selling your existing main residence and buying another property as your main residence this stamp duty will not be applicable.
The new stamp duty takes effect from 1 April, 2016, and is illustrated in the table below:
Purchase Price Band | Existing Stamp Duty | New rate |
£0-£125,000 | 0% | 3% |
£125,000-250,000 | 2% | 5% |
£250,000-£925,000 | 5% | 8% |
£925,000- £1,500,000 | 10% | 13% |
If you are buying a second property (without getting a mortgage), there is still time to complete your purchase. At BakerLaw we can assist with you the legal process without increasing fees during this time. Please contact Lalini de Silva in our Residential Property Department and she will be able to advise and assist you by calling 01252 730760.
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