“At Holland Broadbridge we often find that many clients still remain unclear as to the implications and effects which the new Stamp Duty Land Tax (SDLT) will have on a new property purchase,” explains Gary Holland, Partner at Holland Broadbridge, leading Shropshire estate agent.
As from April 1, 2016 the new SDLT legislation came into effect, meaning that property buyers across England, Wales and Northern Ireland are liable for a 3% increase on stamp duty for most second homes or buy to lets over £40,000.
In order to help explode the myths, Holland Broadbridge guides you through some key facts, to find out whether the higher rate of SDLT applies to you.
The higher rate applies:
- If you are adding a new buy to let property to your existing property portfolio, then the higher rate applies. If you are selling one investment property to purchase another you will also incur the higher charge.
- First time buyers whose parents already own a main residence (and the parents are making a contribution towards the mortgage) the higher rate of SDLT applies. However, if the parent is only acting as the guarantor then the higher rate will not apply.
- If you own a property abroad (with the intention of keeping this property) and you are making a first time purchase in the UK, the higher rate of SDLT will apply.
- If you are entering the buy to let market and converting your main residence as a buy to let, the next property you purchase will incur the higher rate of SDLT.
The higher rate of SDLT does not apply:
- If you are selling your main residence to buy a new main residence, and you already own several buy to let properties, the higher rate will not apply.
- Unmarried couples remain exempt from the higher rate of SDLT, providing the joint purchase is the only property they own.
- Divorcing couples who are purchasing independent properties as their main residence will not be liable for the higher rate of SDLT.
Still unclear? Then please call the sales team at Holland Broadbridge on 01743 357000 who will be pleased to offer further advice. If you would like to calculate your stamp duty, simply click on the link below.
As a leading local estate agent, Holland Broadbridge specialises in sales of town and country properties, including a portfolio of houses suitable for the investment or time buyer.
In addition, the agency’s lettings division provides a comprehensive service to support landlords, from tenant searches through to on-going property management.