News: NEW 3% STAMP DUTY SURCHARGE ON SECOND HOMES
From the 1st of April 2016 you'll have to pay an extra 3% in Stamp Duty if you are buying a second home. After speaking to some of our clients, it is clear that some people are unaware of one very important point:
"If the home you are buying directly replaces your main residence, you will not be liable for the 3% surcharge, even if you own an additional home/s".
Zoopla has produced a very informative article on this subject which provides a quote straight from the Government's consultation document: "A owns both a main residence and a second home. She sells her main residence and purchases a new one. Although she has two properties at the end of the day of the transaction, she has replaced her main residence so the higher rates will not apply."
Their final note on this point is that the Treasury has stated that, moving out of rented accommodation does NOT constitute a main residence. Your last residence will need to be disposed of (i.e. sold) to escape the surcharge.
Read more about this subject at Zoopla.co.uk or call one of our offices for more information.
Keywords: Statons Estate Agents Stamp Duty on second homes