Investing in buy to let or a second home? Remember there are stamp duty changes ahead

Back in Autumn 2015, the Chancellor, George Osborne announced significant changes to Stamp Duty Land Tax (SDLT) that will come into force on 1 April 2016.

The announcement that there would be no SDLT on the first £125,000 of a house’s value was good news for first time buyers (on which, see our recent article).

However,  other tax increases will not make life comfortable for future buy-to-let and second home purchasers (as Jonathan Beardmore explained here). In brief, all purchases of investment properties or second houses with a value over £40,000 will be subject to an additional 3% of stamp duty from 1 April 2016.

If you are deliberating over this type of purchase, now is the time to make your mind up – and proceed before the new charge applies.

If you want to know more about the process of buying a house, have a look at our Guide to buying and selling a home or speak to us on 0161 785 3500.

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Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.

This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.