Treasury reveals how new stamp duty rules will work
Property people have a short and sharp four week window to make their views known to the government about a new stamp duty surcharge on homes for investment.
Chancellor George Osborne announced the 3% stamp duty charge in his Autumn Statement 2015.
The consultation fleshes out the sparse detail of his proposal to raise more tax from property investors.
The higher rates of stamp duty will hit any property buyer who ends up with two or more homes without replacing their main residence from April 1, 2016.
Married couples and civil partners will be allowed one main residence as a couple.
10% of homes hit by increased tax
Anyone buying a home for or with children or relatives will also be subject to enhanced stamp duty rates.
The Treasury reckons the new tax will affect 10% of home purchases in England and Wales.
£60 million of the additional tax raised will go to the Treasury to fund the building of affordable homes.
“This tax will double the government’s affordable homes budget and help first time buyers,” said Financial Secretary to The Treasury David Gauke.
“The government wants to show commitment to helping first time buyers and this is one of the ways we plan to do so.
How much higher rate stamp duty will you pay?
The online guidance includes 42 different examples discussing the circumstances when the new rates of stamp duty will apply.
The consultation is open until February 1, 2016, and asks any interested parties for their views on 20 questions about the new higher rate of stamp duty.
Read the full Higher Rates of Stamp Duty consultation
A similar tax – Land and Buildings Transaction Tax – was introduced by the Scottish Assembly for home purchases north of the border.
New Stamp Duty Tax Rates For Property Investors
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