The new rates will be:
|Purchase price banding||Current rates||New rates from April 2016|
|Up to £40,000||0%||0%|
|£40,001 to £125,000||0%||3%*|
|£125,001 to £250,000||2%||5%|
|£250,001 to £925,000||5%||8%|
|£925,001 to £1,500,000||10%||13%|
*SDLT rates apply to the nominated bandings apart from properties purchased over £40,000 and up to £125,000 which will pay 3% on the total purchase price from 1 April 2016. Published information from the Treasury on these SDLT changes is thin on the ground, but informed opinion would seem to indicate that the additional 3% charge will not apply if you replace your main residence or if you are a significant corporate or fund investor in residential property.
A property purchased for £275,000 that is subject to the new rates will see an increase in SDLT from £3,750 (on property purchased prior to 1 April 2016), to £12,000 if purchased after 1 April 2016.
If you are presently negotiating to buy a new residential property for letting, or a second home, make sure that your advisors complete before the end of March 2016.