Described by Mr Osborne as “a tax on buy-to-lets and second homes” from 1st April landlords will face an additional 3% surcharge on top of the standard rate of Stamp Duty Land Tax.
In practice this means Landlords will face the following rates of SDLT:
 
 

Current rates

New rates with surcharge

Up to £125,000

0%

3%

The next £125,000 (the portion from £125,001 to £250,000)

2%

5%

The next £675,000 (the portion from £250,001 to £925,000)

5%

8%

The next £575,000 (the portion from £925,001 to £1.5 million)

10%

13%

The remaining amount (the portion above £1.5 million)

12%

15%


 

If you buy a house for £275,000, the SDLT you owe is calculated as follows:

OLD

NEW

0% on the first £125,000

£0

£ 3750 @ 3%

2% on the next £125,000

£2,500

£ 6250 @ 5%

5% on the final £25,000

£1,250

£ 2000 @ 8%

Total SDLT

£3,750

£ 12 000

Richard Lambert, CEO at the National Landlords Association, said, “The Chancellor’s political intention is crystal clear; he wants to choke off future investment in private properties to rent.  The exemption for corporate investment makes this effectively an attack on the small private landlords who responded to the housing crisis by putting their own money into providing homes by the party that they put their faith in at the election.”
We will be happy to forward any comments you would like us to pass onto Henry Smith, MP for Crawley, in confidence.
 
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