Stamp duty changes April 1, 2016: everything you need to know …
From April 1, 2016, the UK government is introducing a new stamp duty system, which will see the tax rate rise from 4% to 5% on properties worth between £1 million and £2 million. The changes are aimed at reducing the number of high-end properties being bought up by foreign investors and helping to boost the supply of homes for UK buyers.
How will the changes affect you?
If you’re a buyer, you’ll need to pay 5% stamp duty on properties worth between £1 million and £2 million, and 10% on those worth over £2 million. If you’re a seller, you won’t be affected by the changes, as the tax is paid by the buyer.
What are the benefits of the changes?
The government claims the changes will help to reduce the number of high-end properties being bought up by foreign investors, which will help to boost the supply of homes for UK buyers. The changes will also help to reduce the number of properties being left empty, as foreign investors will be less likely to buy them up.
What are the drawbacks of the changes?
Some critics argue that the changes will make it more difficult for foreign investors to buy properties in the UK, which could have a negative impact on the economy. Others argue that the changes will make it more difficult for UK buyers to get on the property ladder, as they will have to pay more in stamp duty.
‘The changes will help to reduce the number of high-end properties being bought up by foreign investors, which will help to boost the supply of homes for UK buyers.’
What do you need to do?
If you’re a buyer, you’ll need to pay 5% stamp duty on properties worth between £1 million and £2 million, and 10% on those worth over £2 million. If you’re a seller, you won’t be affected by the changes, as the tax is paid by the buyer.
Conclusion
The changes to the stamp duty system are aimed at reducing the number of high-end properties being bought up by foreign investors and helping to boost the supply of homes for UK buyers. While there are some drawbacks to the changes, the government claims they will have a positive impact on the economy and the property market.
