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Higher rates of Stamp Duty on purchases of additional residential properties from 1 April 2016

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From 1 April 2016, there will be higher rates of Stamp Duty Land Tax (SDLT) payable on purchases of additional residential properties. This means that if you are purchasing a holiday home by the coast, a second home or you are Landlord snapping up ‘Buy to Let’ properties, from 1 April 2016 you will have to pay a higher rate of Stamp Duty at 3% above the current SDLT rates. To put this into perspective, a purchase at £150,000 completed prior to 1 April 2016 will attract Stamp Duty of £500 but a purchase at £150,000 completed post 1 April 2016, will see Stamp Duty payable at £5,000. Remember though, the higher rates of Stamp Duty are only applicable if you a buying a property in addition to your main residence, so if you are just replacing your main home (which is being sold), the higher rates will not apply to you. If the property you are purchasing is intended to replace your main residence but it has not yet been sold, the transaction will be subject to the higher Stamp Duty rates but a refund is available to you if you sell your previous main residence within 18 months. Whatever your situation, Pearcelegal can advise you appropriately and assist you with your purchase and Stamp Duty formalities in a friendly, timely and professional manner.

 

 

 

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