We’ve switched our classes to live online. For more Covid-19 updates, click here

UK buy-to-let stamp duty changes from next year

UK buy-to-let stamp duty changes from next year

Buy-to-let investors and holiday home buyers will have to pay stamp duty rates that are three percentage points higher as from April next year.

Special "landlord" stamp duty tax rates will come into force from April 2016, meaning that investors will have to pay thousands of pounds more extra in tax than they do currently. Those buying a property to live in will not be affected.

Significant increase

The changes will make a significant difference, as shown by the example of a £250,000 buy-to-let property, which will see the stamp duty payable leap from £2,500 to £8,800.

The increased rates will also apply to other second properties where the owners do not intend to live in full time, such as holiday homes.

The new move, which was announced in the Autumn Statement, is estimated to be worth an extra £625 million to the exchequer next year, rising to £880 million in the future.

Even if prospective buyers bring forward transactions to beat the new duty, the Treasury will expect to net an extra £30 million before April due to the surge.

Spending Review

The Spending Review and Autumn Statement document makes it clear that purchases of caravans, mobile homes and houseboats will not be affected, nor will corporate entities or funds that make significant investments in residential property developments.

The new move follows a stamp duty overhaul that took place only last year with the removal of so-called “cliff edges” in the system.


Other News

AAT achieve KHDA recognition

We are excited to announce that AAT has been officially recognised as an International Certification Organisation by the Knowledge and…

LSBF Professional Qualifications Campus Re-opening from 1 September

We’re excited to announce that from Tuesday 1 September, our doors will be reopening to students, and we have put…

LSBF Professional Qualifications Campus Re-opening

LSBF Professional Qualifications is officially set to re-open its doors from September. Find out more…

Back to top