On 16th March 2016, the Government introduced a new higher rate of Stamp Duty Land Tax (SDLT) on purchases of additional residential properties in the UK. Under the new rules, an additional 3% is payable on each band of SDLT if, after completion of the purchase, you own another property anywhere in the world. It is important, therefore, for you to disclose to us all properties you own if we are acting for you on a purchase.
There are reliefs available from the new higher band, the most useful being if you are replacing your main residence. Even if you own other properties, if the one you are purchasing is replacing the home you live in, you will not have to pay the additional 3% of SDLT. If there is a delay selling your old home, you will have to pay the additional SDLT on completion of your purchase but will have up to 36 months to sell your old home and claim an SDLT refund from HMRC.
The new rules can be confusing. Our team keep fully up to date with changes in the law and will be happy to talk you through them.