Current Situation

Stamp Duty and the Current Situation

With the recent legislation changes in the UK, it is becoming far more Tax efficient to own investment properties in a corporate structure.

From the 1st April 2016, landlords have had to pay the standard rates of Stamp Duty, plus an extra three percent when they purchase a Buy-to-Let property in addition to their main residence. This increase can add thousands of pounds to the Stamp Duty bill and applies to property purchases in England, Wales and Northern Ireland.

Increase of Stamp Duty Charges

From April 2016, the rates for landlords or buyers purchasing additional homes is 3% on properties up to the value of £125,000. Then respectively as follows:-

  • 5% of the sales price between £125,001 and £250,000
  • 8% between £250,001 and £925,000
  • 13% between £925,001 and £1.5m
  • 15% on anything above £1.5m

This change in Stamp Duty charges also extends to homes abroad. For example, if you already own a home in Spain and buy an additional property in England, you will have to pay the higher rate of stamp duty.

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