Higher stamp duty rates for buy-to-let-property
In addition to the changes to the Wear & Tear Allowance and The Mortgage Relief Restriction announced by Chancellor George Osborn in his Summer Budget, in his Autumn Statement he announced Stamp Duty Land Tax (SDLT) on additional properties such as buy-to-let investments and second homes will be 3 percentage points higher than current SDLT from April 2016.
Corporate properties and properties in Scotland (which are subject to land and building transaction tax) are not affected by the new rules.
The new rates will not apply to caravans, mobile homes or house boats and properties below £40,000.
The Government will consult on the exact policy details including a possible exemption for corporate and funds that own more than 15 residential properties.
SDLT rates for additional properties
|Portion of property price||Current SDLT rate||SDLT from April 2016 rate|
|Up to £40,000||Zero||Zero|
|£40,001 – £125,000||Zero||3%|
|£125,001 – £250,000||2%||5%|
|£250,001 – £925,000||5%||8%|
|£925,001 – £1.5 million||10%||13%|
|Above £1.5 million||12%||15%|
In his Autumn Statement speech George Osborne said:
“People buying a home to let should not be squeezing out families who can’t afford a home to buy.”
Richard Lambert, CEO at the National Landlords Association, said:
“The Chancellor’s political intention is crystal clear; he wants to choke off future investment in private properties to rent.
“The exemption for corporate investment makes this effectively an attack on the small private landlords.”
Contact us about how changes to stamp duty could affect you.