Second property Stamp Duty Changes – have your say

sdlt and investmentsIn his Autumn statement the Chancellor George Osborne announced plans to increase the Stamp Duty Land Tax by 3% on Second Homes.

Perhaps you do not have a second property, perhaps you do, but do not intend to buy another – but did you know that under the draft proposals…

  • Home movers who have another property will pay the extra 3% on their new home
  • You pay an extra 3% if you are buying a new home but not selling your current home
  • You pay an extra 3% if your spouse owns a property
  • You pay an extra 3% if you are buying with your child to assist them

The Government have produced a simple flow chart to enable you to check if you are liable for extra tax under the current proposals.

SLDT flow chart

If unchanged this all happens from 1st April 2016

An example

Our client has a flat is London which used to be their home and which is now let out. They currently rent a house in Buckinghamshire where they now work. Their Landlord has offered them an opportunity to buy their home at £900,000. Should they buy now the Stamp Duty Land Tax bill will be £35,000.

Under the new proposals from April, their new stamp duty land tax bill to buy their home will be £62,000.

An extra tax bill of £27,000 just because they own a property they bought several years ago.

Anyone interested in taxpayers not being unfairly penalised should read the current proposals and make comment on them.

Are you concerned about how these proposed changes will effect you? Need some advice? Call us now on 020 8979 9684

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