call-to-action call-to-action-mobile

When do I Need to Pay Additional Stamp Duty?

Fri 08 Jun 2018


Repostfrom ison harrison, for the original article please follow the link >>> http://ow.ly/ncYW30koWEo


When do I Need to Pay Additional Stamp Duty?

When do I Need to Pay Additional Stamp Duty?

A recent blog post detailed the new rules for first time buyers- but how does it work if you are already a homeowner? Clients still look for clarity on this point before they proceed, and  April 2016 saw the introduction of a controversial amendment to the rules relating to Stamp Duty, resulting in one of the busiest periods ever seen in our Residential Property department as buyers sought to complete before the changes took effect.st1withthis in mind our Residential Property expert Iain Gardner looks at the procedure below.

I already own a home but want a Buy-to-Let property: will I need to pay extra Stamp Duty?

Yes. It’s the purchase of the additional property that counts. Put simply, if you already own a house but want to buy another, you will have to pay extra.

If you’re replacing your main home then you will pay Stamp Duty at the normal rates- there will be no additional cost.

How much is the additional Stamp Duty?

As with Stamp Duty generally, a tiered system operates, as shown below.

 
Property cost                                                                                                                     Stamp Duty

£40,000- £125,000                                                                                                            3%

£125,000- £250,000                                                                                                          5%

£250,000-£925,000                                                                                                           8%

£925,000- £1.5m                                                                                                               13%

£1.5m+                                                                                                                                 15%

In reality, it may not be likely that the upper percentages will apply in your case- but there are still plenty of investors whom will need to factor in the additional sums. If the additional property is being bought for less than £40,000, there will be no additional Stamp Duty to pay.

Purchasers of holiday homes need to be aware of the rules too, even if ownership is to be shared amongst a handful of people.

I’m replacing my main residence, but I will own two properties for a short time- am I still liable?

Unfortunately so- but there is a silver lining. Once your old property has been sold, you have three months to apply to HMRC for a refund of the additional sum (or within 12 months of the filing date of your self-assessment tax return.)

Your previous main residence must have been sold within 3 years of paying the higher rate of SDLT.

If you have any queries relating to the content of this article, speak to one of our Residential Property experts on 0113 284 5000. We can also provide free, no obligation quotations for our conveyancing services- so please do call today and speak to one of our friendly team.

"Went above and beyond to help us with our house move. He even helped move us in. We are so grateful for all his help and if we ever need to move again I would not hesitate to use Boultons, thank you again "
Mr and Mrs D

News Archive

July 2018

Japanese Knotweed - The plant that could cost you your home!

June 2018

It’s time we let the feudal leftover of leasehold ownership expire

When do I Need to Pay Additional Stamp Duty?

April 2018

Selling your home: a guide for first timers from Laura Kurowski at Wilkinson Woodward

walk from Cragg-vale to Stoodley-pike

Estate Agents phrasebook

March 2018

01/03/2018 - Our offices are closed due to the weather

February 2018

Where did Shrove Tuesday / Pancake Day come from & Perfect Pancake Recipe

January 2018

February Guest writer Amanda Harris talks Interior trends for 2018

Huddersfield tops Yorkshire for House price growth in 2017

DRIVING IN SNOW AND ICE

January Guest Writer, Country Life and design

November 2017

Pontefract Castle

December Guest Writer Amanda gives advice on how to create a traditional Christmas home

November 2017

Ferrybridge Henge

Guy Fawkes

October 2017

Turnips, pumpkins and stingy Jack?

Sloe Gin

Breast Cancer Awareness Month: Lisa's Story

Halloween and where it all began

Mr Dalloway's Picnic Pies

May 2017

Add value to your home.

October 2016

Buyers slowly returning to the housing market

July 2016

New Chancellor Phillip Hammond has been urged by an industry trade group to reset the government’s approach to taxing the buy to let sector.

June 2016

Boultons - Can you spot the ball

April 2016

A SIMPLE GUIDE TO SURVEYS

10 TOP TIPS BEFORE YOUR VIEWING.

Boultons in management buy-out

Top 5 mistakes people make when selling their homes

October 2015

Armitage Sykes: Martin Thompson on changes to the Home Builders Consumer Code