Stamp Duty Increases

As of the 1st of April 2016:

Anyone left with two properties in England, Wales or Northern Ireland after buying or selling must pay an extra 3 per cent stamp duty bill,

Only houseboats, caravans, homes under £40,000 and some multiple purchases are exempt.

This increase applies to companies and individuals no matter the number of properties being purchased.

Since the alterations, multiple property owners will now have to pay 3 per cent additional charge for each stamp duty rate band allocation.

 

The following diagram was provided by the government to outline the effects of the change

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Anyone owning a second property that isn't their main residence and buying another, or replacing the one they don't live in, is likely to get caught up in the changes.

If you buy another property, you will have to pay the new stamp duty fees even if you move into it and make it your main home.

You will also have to make the payments for your old property that you have moved out of if you still own it at the time of purchasing the new property however, you will be able to acquire a refund if you sell the old property within 36 months of buying the new one.

You will be able to apply for this refund via HMRC.

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