You currently have JavaScript disabled. This site requires JavaScript to be enabled. Some functions of the site may not be usable or the site may not look correct until you enable JavaScript. You can enable JavaScript by following this tutorial. Once JavaScript is enabled, this message will be removed.

Why choose HGH?

Stamp Duty Land Tax – Info for Investment Property Owners

Posted: 1st Mar 2016 by Robert Salenius Investment Property, Taxation
Stamp Duty land Tax

The Autumn Statement in December 2015, brought some more bad news for property investors with changes to Stamp Duty Land Tax.

Higher rates of Stamp Duty Land Tax (SDLT) will be charged on purchases of additional residential properties (above £40,000), such as buy to let properties and second homes, from 1 April 2016.

Additional rate of Stamp Duty Land Tax

There will be an additional rate of  Stamp Duty Land Tax  of 3% from 1 April 2016. For example, if an additional home is purchased for £250,000, 3% will be due on the first £125,000 (instead of 0%) and 5% will be due on the remaining £125,000 (instead of 2% currently). That is an increase of tax to be paid, from £2,500 currently to £10,000 from 1 April 2016.

The higher rate will not apply if you are replacing your main residence of if you are purchasing your first home.

The new rules might create problems for home owners who purchase a new home before selling their current property if they are not able to sell their old home within 18 months of acquiring a new one.

Stamp Duty Land Tax uplift results in increase in sales

According to a Residential Market Survey by the Royal Institute of Chartered Surveyors, there has been a momentum of property investors trying to beat the April Stamp Duty Land Tax uplift. Approximately, 75% of respondents to the survey saw an increase in purchase activity. About one-half of respondents were unsure how the more penal enviroment will affect the buy to let market in the long term. It remains to be seen if landlords will pass the additional tax on to tenants by increasing rents.

Contact us

For more information on Stamp Duty Land Tax or any other Tax queries please contact or call 01904 655202 or visit Specialist Tax Services to find out more.