Announced new rules for the levying of Stamp duty in the UK

So announced details of changes in the order of levying of Stamp duty for buyers of property in the UK, bought their second homes and investors.

Just two weeks before the introduction of the new rules, which will come into force on 1 April 2016, the UK Chancellor George Osborne, in his budget address gave the details of the innovations.

For sales prior to March 31, 2016, Stamp duty will not be charged. For transactions for which exchange of contracts took place before November 25, 2015 will not be required to pay additional Stamp duty.

As a General rule, for other buyers, who buys a property in UK for investment, or it’s not only his housing to the existing scale of Stamp duty is added an additional 3%.

In the end, the new scale of Stamp duty for investors and buyers of homes in the UKwho have more than one house, will look like the following:

At the cost of property to £125000 – 3%

For buyers of property between £125000 and £250000 – 5% difference

For buyers from £250,000 to £925000 – 8%

For properties from £925000 up to £1.5 million – 13%

Above £1.5 million – 15%.

For those who sell their first home to buy another, set the maximum term of sale of the old house – no more than 36 months. This means that if the old home is sold within 3 years, the buyer will have to pay for a new home increased Stamp duty at the rate of 3%.

The government expects that in conditions when the country is suffocating from a lack of available property on the market, increasing the tax burden on investors, facilitate the entry of new houses for young families and those who first buys a house. According to preliminary government estimates, a three percent increase in Stamp duty for investors will bring the UK Treasury an additional charge of £3.7 billion over the next five years.

® Helen Entree. 18.03.2016 G.

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