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06 April 2016
New Stamp Duty on Buy-to-Let Landlords

New Stamp Duty on Buy-to-Let Landlords

With effect from the 1st April 2016 there will now be a 3% surcharge on each stamp duty band where the property is being purchased as a buy-to-let investment or as a second home.
 
The stamp duty tax rates for buy-to-let and second homes are as follows
 
Up to £125,000
£125,001 - £250,000
£250,001 - £925,000 
£925,001 - £1.5M
3%
5%
8%
10%                                   
 
 
 
 
 
That means that for properties worth between £125,000 and £250,000, where the stamp duty is 2%, buy-to-let landlords will pay 5%, and for properties worth more than £250,000 and up to £925,000, where the stamp duty is 5%, buy-to-let landlords will pay 8%.
 
So, for example, if you now bought a buy-to-let property for £150,000 you would pay 3% stamp duty on the first £125,000 (£3,750) and 5% on £125,000 to £150,000 (£1,250) Totalling £5,000 to oppose to first time buyer or second steppers who would only pay £500.
 
It is little wonder that in the last two weeks in March we witnessed a last minute rush for completions and as a result of this we had one of our best months ever for sale completions. 
 
If you would like more advice on buy-to-let investment please get in touch with us on 0151 330 5333.
 

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