On 01 April 2016, The Treasury will introduce new stamp duty rates for anyone purchasing a second home.
Those affected by the increase in stamp duty include anyone buying a holiday home, purchasing a buy to let investment, parents purchasing for their children and couples who are purchasing a home together where one of them may already own a home. Also affected is anyone who is purchasing a property in England, Wales or Northern Ireland for the first time but already own a home elsewhere .
The new rates are 3% above the current residential rates:
|Band||Existing rate||Proposed Rate|
|£0 – £125K||0%||3%|
|£125K – £250K||2%||5%|
|£250K – £925K||5%||8%|
|£925K – £1.5M||10%||13%|
There are some exceptions that do not fall into the new rates:
The higher rates will apply to purchases of buy to let and second home with a completion date on or after 1st April 2016.