Pay online

Privacy notice

Contact us

Map

Client login

 01332 202660

e-signing

guide

email

Accountant background

Extra 3% SDLT on the horizon for buy to lets and second homes

 

ARCHIVE

NEWS

BUSINESS

FEB 2016

OUR

PROCESS

GET IN TOUCH
WITH US

GET TO KNOW

US

The Chancellor announced in the Autumn Statement last November that he would be introducing new rates of Stamp Duty Land Tax (SDLT) on purchases of buy to let properties or second homes.

 An additional 3% SDLT charge will apply to the purchase of residential properties caught by the new rules and this change is expected to come into effect for completions on or after 1 April 2016.

There is an exemption from the charges for transactions under £40,000.

In December the Scottish government announced a Land and Buildings Transaction Tax (LBTT) supplement on additional homes. A bill has been introduced in the Scottish Parliament to introduce similar changes to LBTT.

The government is currently consulting on how the rules will be implemented and in which circumstances they will apply. It should be noted that the proposed changes will significantly increase the SDLT and LBTT on the purchase of second homes.

The rules will also impact on those individuals who purchase a new home where they have yet to sell their current home. The higher SDLT and LBTT rates would be payable on the purchase of the second property although this additional tax may be refunded if the first property is sold within 18 months.

To read the consultation which includes some examples of how the rules will operate use this link.

Registered office: 61 Friar Gate, Derby, Derbyshire, DE1 1DJ   T: 01332 202660

Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd.  Registered in England No. 05770414

Registered to carry out audit work by the Association of Chartered Certified Accountants - auditregister.org.uk 8011438

       Services

Member of the Association of Chartered Certified Accountants
Phone

01332 202660

61 Friar Gate  Derby  DE1 1DJ

Tax planning
Tax problems