According to the Telegraph from Friday April 1, second-home buyers and buy-to-let investors have faced a new higher rate of stamp duty when buying a property.

The extra 3pc surcharge will sit on top of the rate for the value of property that they are buying.

Do I have to pay?

Those who are buying additional properties will have to pay the higher rates – anyone buying a first property, or selling their current home and buying a new one, will be exempt.

Following consultation, the Treasury has now said that anyone buying a new main residence has three years to sell their existing main residence without paying the extra tax.

This flowchart, published before the end of the consultation, explains how the system works for most buyers – the only difference is that instead of 18 months buyers now have three years to buy a new property.

Flowchart explaining the new stamp duty rules

The only exception to this is that anyone who owns other properties but not a main home, and who previously owned a home but sold it any time before the Autumn Statement announcement on November 26, 2015, has three years from that date to buy a new home – so until November 26, 2018.

Buy-to-let investors who already own their own home will have to pay the surcharge, as will anyone who helps a child buy a property.

 

Source: http://www.telegraph.co.uk/property/buy/stamp-duty-what-is-the-new-rate-on-property-and-will-i-have-to-p/   19/04/2016