Beat the Stamp Duty increases

Beat the Stamp Duty increases


Stamp duty is about to increase, will you be affected?

With Stamp duty increasing in April 2016 for buy to let investors and buyers of second homes, our experts here at Paul Alexander Mortgage Consultants, have compiled all the information you need to know. Don't know what Stamp Duty is? Click here to find out more

For those in England and Wales, the new increases will mean a 3% surcharge within each Stamp Duty band, as an example a purchase price of between £250,000 and £925,000 will raise the rate of Stamp Duty from 5% to 8% for buyers.

The changes within each rate band will be as follows: 
  • Property purchase of £40,000 to £125,000 – Stamp Duty will be levied at 3% (currently 0%)
  • Up to £250,000 – 5% (currently 2%)
  • Up to £925,000 – 8% (currently 5%)
  • Up to £1.5m – 13% (currently 10%)
  • Over £1.5m – 15% (currently 12%)

How much will a Buy to Let investment now cost?

Purchase Price First Home  Buy to Let/Second
£100,000 Zero £3,000
£125,000 Zero £3,750
£150,000   £500 £5,000
£175,000     £1,000 £6,250
£200,000 £1,500   £7,500
£250,000 £2,500 £10,000
£300,000 £5,000 £14,000
£400,000 £10,000 £22,000
£500,000 £15,000 £30,000
£750,000 £27,500 £50,000
£1m £43,750 £73,750

Do you qualify for the exemption?

These higher rates will only apply to purchases of additional residential property which complete on or after 1 April 2016. However there is an exception - if your contract was exchanged:

Before 25 November 2015 
But purchase completed after 1 April 2016 - Stamp duty is not payable. 

However After 25 November 2015 
& Purchase completed on or after 1 April 2016 - Higher rates will apply. 

The next steps...

If you did not exchange contracts before 25 November 2015 and are currently thinking of purchasing a second home, act now and complete the purchase before the 1st April 2016 to avoid these new charges. 

Contact Paul Alexander Mortgage Consultants today so we can help you with the purchase.

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