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Changes in stamp duty – is it time to buy?

December 17th 2015
By: Melanie Hollidge

Last month the Chancellor of the Exchequer announced increases in stamp duty for investors who are in the buy to let sector and those looking to invest in a second home.  The changes mean that investors will have to pay an extra 3% to purchase a property after the 1st of April 2016.
 
At the moment, buyers pay no stamp duty on the first £125,000, 2% between £125,000 and £250,000 and 5% between £250,000 and £925,000. After the 1st of April 2016 if you buy a house worth £125,000 you will need to pay £3,000 in stamp duty whereas now you would pay 0%.
 
The new stamp duty changes are:
 
*   Property purchase of £40,000 to £125,000 – Stamp Duty will be levied at 3% (currently 0%)
*   Up to £250,000 – 5% (currently 2%)
*   Up to £925,000 – 8% (currently 5%)
*   Up to £1.5m – 13% (currently 10%) 
*   Over £1.5m – 15% (currently 12%)
 
Other changes Lord Osborne has introduced involve the speed in which investors will need to pay their Stamp Duty bill, this is currently 30 days but will be reduced to 14 days, and Capital Gains liability will need to be paid within one month, at the moment investors have up to six months.
 
So if you are looking at investing in a second property or would like to add to your portfolio there has never been a better time to do it, so why not contact your local branch of Goodfellows or give our team a call on 0845 3727070.