Buy-to-let homes face higher stamp duty
Buy-to-let landlords and people buying second homes will soon have to pay more in stamp duty, the chancellor has announced.
From April 2016, those in England and Wales will have to pay a 3% surcharge on each stamp duty band.
George Osborne said the new surcharge would raise £1bn extra for the Treasury by 2021.
The stamp duty increase will lift each band by 3% for BTL purchasers. 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%.
Property Value Standard rate BTL Rate April 2016
|Up to £125,000.||0%||3%|
|£125 – £250,000||2%||5%|
|£250 – £925,000||5%||8%|
|£925 – £1.5m||10%||13%|
A rush of purchases ahead of its introduction in April is expected, so if you are thinking of selling, now may be the best time to get in touch for your free no obligation valuation.
Alternatively, If you are thinking of purchasing a buy-to-let property, contact your local Maitlands office, we can provide advice and guidance along side our in-house mortgage advisers.