Stamp duty increase for landlords and multiple homeowners

In the Autumn Statement, Chancellor George Osborne announced a substantial increase in Stamp Duty on the purchase of additional residential properties. That will therefore apply to situations such as purchase of a property to let out or of a second home.

From April 2016 any such properties will face an additional 3% charge, on top of the existing levy.

This means the new stamp duty structure in England and Wales will look like this:

Property ValueStandard RateAdditional Properties
£0-£125,0000%3%
£125,001-£250,0002%5%
£250,001-£925,0005%8%
£925,001-£1.5m10%13%
Above £1.5m12%15%

Stamp duty is applied only to the portion of the property value falling in that band, similar to income tax.

So while a sole home valued at £300,000 would incur £5,000 stamp duty, if that same £300,000 were an additional Buy to Let property for example, the stamp duty charge would increase to £14,000.

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