What Do Stamp Duty Changes Mean for Buy to Let and 2nd Properties?
If you’ve been considering buying a second property or a buy to let property but the higher rates of Stamp Duty have put you off, now is the perfect time to finally invest in that second home. The changes to Stamp Duty mean you could save thousands of pounds on your new property purchase.
While there are still higher rates in place for second properties, the changes to Stamp Duty mean that the bands have increased. So if you’re buying a property in England, you’ll only pay the additional 3% Stamp Duty if the second property costs up to £500,000.
This makes a huge difference compared to paying the extra 3% on top of the standard rates of Stamp Duty, which will be back in place after 31 March 2021.
Our Conveyancing Solicitors can advise you on buying a second property following the new changes to Stamp Duty Land Tax. We are a nationwide team who can assist you through each stage of your investment and help you if you’re trying to build your Buy to Let property portfolio.
For free initial advice get in touch with our Conveyancing Solicitors.
Stamp Duty on Second Properties
If you buy a second property in England before 31 March 2021, you’ll be able to save money on Stamp Duty Land Tax.
The new rates for Stamp Duty on second properties are:
- Up to £500,000 3% Stamp Duty
- £500, 001 to £925,000 8% Stamp Duty
- £925,001 to £1.5m 13% Stamp Duty
- Anything above £1.5m 15% Stamp Duty
You should take advantage of the Stamp Duty reductions before 31 March 2021, as after this date they will return to the standard rates. This means that you could end up paying a lot more Stamp Duty on your second property if you wait too long to buy it.
Let’s look at an example based on buying a second property at £270,000.
At the previous stamp duty rates, you would pay £11,600 in Stamp Duty, but under the new reductions, you’d only pay £8,100.
We’re assuming that the government will put the Stamp Duty costs back up to the levels they were at previously, but we do need to wait and see.
If you want to check what Stamp Duty costs you’d pay on a second home under the reduced scheme, please check the government’s Stamp Duty Calculator.
Remember, you need to complete on or before 31 March 2021 to take advantage of the reduced Stamp Duty rates.
How Can We Help You?
You can save yourself thousands of pounds if you buy your investment property soon. To help your money stretch even further, we’re offering all buyers and sellers £100 cashback if you complete within 3 months. And, we’re offering you a free Will with every cashback too.
We want to make sure everyone who wants to move quickly can, and with all the uncertainty around Coronavirus and a potential second spike in the winter, pushing for a quick completion could be in your best interests.
Our team of Conveyancing Solicitors will make your completion as quick and pain free as possible.
We always include information on how much Stamp Duty you’ll pay in our Conveyancing quotes, so either speak to one of our Conveyancing Solicitors and we’ll take some details or use our Free Online Conveyancing Quote.
Simpson Millar Solicitors are a national law firm with over 500 staff and offices in Billingham, Bristol, Cardiff, Catterick, Lancaster, Leeds, Liverpool, London and Manchester.