From 1st April 2016, there will be a higher rate of stamp duty payable by those who purchase a buy to let property or second home.
The higher rate of tax applies to properties above the price of £40,000.00 and will be in the sum of 3%. This additional tax is payable on the full purchase price of the property. The new tax band is in addition to the normal stamp duty rate.
If the property you are purchasing is to replace your main residence, which is also on the market to be sold, then the higher rate of stamp duty will not apply, however if your main residence has not sold at the time you complete the purchase of the new additional home then you will have to pay the higher rate. A refund will be made if the previous main residence is sold within 18 months.
Buyers must inform their solicitor if the property they are purchasing will be an additional property. If the they do not disclose this information it is tantamount to fraud and the buyer will be liable to pay a penalty which could be a lot more than the additional 3% stamp duty.
For more information about the new higher rate of stamp duty please read the full guide on the gov.uk website. If you have, or are looking to grow, a buy-to-let portfolio or purchase a second home, please contact us for some initial advice. We would be happy to act as your conveyancing solicitors during the purchasing process.
Please contact our conveyancing team who offer a nationwide service and can help you purchase a property anywhere in the UK: Uzma Begum, Oldham office, 0161 624 6811, firstname.lastname@example.org OR Colette Stephens, Todmorden office, 01706 815 712, email@example.com
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