Impact of stamp duty surcharge ‘worse than has been suggested’
The National Landlords’ Association insists that some media forecasts of the impact of the new three per cent stamp duty surcharge on buy to let properties actually understate the impact on investor-purchasers.
It has given a series of examples to show how much will actually be paid.
It says the higher rates will be three per cent above the current SDLT rates, but if you buy property for £40,000 or less it will be zero. However, anything above that sum and you pay the full three per cent on the whole amount.
It will not apply to purchases of caravans, mobile homes or houseboats – nor to corporates or funds making significant investments in residential property.
With the surcharge, the amounts payable by landlord purchasers will be:
– for a home costing up to £125,000 (which attracts no stamp duty currently for owner-occupier purchasers) the new landlord stamp duty cost will be three per cent;
– for the next £125,000 (the portion from £125,001 to £250,000) – five per cent;
– for the next £675,000 (the portion from £250,001 to £925,000) – eight per cent;
– for the next £575,000 (the portion from £925,001 to £1.5m) – 13 per cent;
– for the remaining amount (the portion above £1.5m) – 15 per cent.
See more here.
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