property taxesThe UK Government has introduced several new property tax policies in recent months which may affect you if you are planning to buy, let or sell property in the UK. Some have interpreted these changes as an attack on landlords and second home owners.

Buying

Residential Properties

The changes to stamp duty when buying a property has changed significantly over the past two years. Before 4th December 2014 people had to pay stamp duty at one rate which was determined by the value of the property. This was replaced with the current “slice” system which means that stamp duty is calculated only on the property price that falls within the band.

First £125,000 0%
£125,001 – £250,000 2%
£250,001 – £925,000 5%
£925,001 – £1,500,000 10%
Above £1,500,000 12%

 

Under this system a property bought for £500,000 would have stamp duty of £15,000. However, as part of the 2016 budget it was announced that from 1 April 2016 there was to be a surcharge of 3% on second homes costing over £40,000.

1st property additional properties