Definition: Stamp duty land tax (or Land and Buildings Transaction Tax in Scotland) is a lump-sum tax that anyone buying a property or land costing more than a set amount has to pay.
From 1 April 2016, anyone who buys additional property, including buy-to-lets and second homes, will have to pay an extra 3% of the purchase price in stamp duty. This does not apply to land, commercial or semi commercial units, only residential purchases in personal or limited company.
The additional charge applies above the current “stamp duty land tax” rates. The below table illustrates how the changes will affect you:
For example, anyone buying a £250,000 second home or buy to let before April pays stamp duty of £2,500. This is based on paying zero per cent on the first £125,000 of the property value and 2 per cent on the portion between £125,001 and £250,000. But from April, landlords will have to pay 3 per cent for the first £125,000 and 5 per cent instead of 2 per cent on the amount between £125,001 and £250,000, meaning that they will have to pay £10,000 in total.
For the answers to all your Stamp Duty questions contact our conveyancing team 01639 885261
Read this article in full http://www.propertywire.com/news/sponsored/a-guide-for-landlords-on-the-2016-stamp-duty-changes-37-days-left.html