It was announced in the Autumn Budget of 2015 that there would be an increase in Stamp Duty on Buy to Let and second homes.
The hike will apply to any additional residential property costing more that £40,000. The reason for the hike is thought to be that many first time buyers are finding it difficult to get onto the property ladder after a surge of people purchasing buy-to-let properties in the last few years.
Stamp Duty is worked out in the same way as Income Tax is calculated meaning different that different rates are chargeable on different proportions of the property price. So how much is payable?
Properties up to £40,000 are exempt from Stamp Duty however, properties priced £40,000.01 – £125,000 will be charged Stamp Duty on the full price.
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