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Second Homes, Buy To Lets and Stamp Duty Changes
- AuthorEmma Gilroy
You may have seen in the Press that the Government’s Autumn Statement announced that from 1 April this year, there is to be a 3% increase in stamp duty for second property purchases, such as second homes and buy to let properties.
The higher rates will not apply to purchases below £40,000, purchases of caravans, mobile homes or houseboats or purchases by corporate investors or those making significant investment in residential property.
In order for the higher rate of stamp duty not to apply (where the purchase price is over £40,000), one of the following circumstances must be shown:
- Contracts were entered into before 26 November 2015 but completion is to take place on or after 1 April 2016.
- Contracts were entered into and substantially performed before 26 November 2015 but completion is to take place on or after 1 April 2016.
- Contracts were entered into before 26 November 2015 and substantial performance or completion will take place between 26 November 2015 and 31 March 2016.
- Contracts are entered into between 26 November 2015 and 31 March 2016 and substantial performance or completion will take place on or before 31 March 2016.
This obviously has a major impact for buy to let purchasers or those looking to buy a second home. If you think you may be affected by these changes, or you would like further information, please contact our residential property team.