Stamp Duty Land Tax changes from the 1st April 2016

Stamp Duty Land Tax (SDLT) is a progressive tax paid when purchasing a freehold, leasehold or shared ownership residential property over £125,000 in England. With the changes to SDLT due to be implemented in April 2016 for second homes and buy-to-lets, we have calculated some figures on how these changes will affect the SDLT on the houses you are looking to purchase.

Here are some examples ….

Birch Meadow Close £149,950 - http://www.crabbcurtis.co.uk/search/view/3862

Currently you would pay no tax on the first £125,000, then 2% on the remaining £24,950 (£499) = £499

With the new SDLT you would pay 3% on the first £125,000 (£3750), and 5% on the remaining £24,950 (£1247.50) = £4997.50

Therefore you would save this amount if you completed your purchase before April 2016 (£4997.50 - £499) = £4498.50

Packwood Mews £265,000 - http://www.crabbcurtis.co.uk/search/view/6793

Currently you would pay no tax of the first £125,000, then 2% on the next £125,000 (£2500), and 5% on the remaining £15,000 (£750) = £3250

With the new SDLT you would pay 3% tax on the first £125,000 (£3750), then 5% on the next £125,000 (£6250), and 8% on the remaining £15,000 (£1200) = £11,200

Therefore you would save this amount if you completed your purchase before April 2016 (£11,200 - £3250) = £7950

If you’re looking to sell your home, then get in contact on 01926 888 777 or email us on leamington@crabbcurtis.co.uk

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