A Oswestry solicitor has reported an unusually high number of enquiries from would-be Buy to Let Landlords and second home owners following the announcement of the increases to Stamp Duty Land Tax on second homes set to kick in on 1st April 2016.
Hywel Jones, a solicitor in the property department of leading North Wales and Shropshire law firm GHP Legal says the ‘rush to buy’ is understandable when the SDLT on a £200,000 property purchased after 1st April will rise from £1,500 to £7,500 on a property purchased after that date.
“I don’t think I have ever had so many enquiries at this time of the year,” said Mr Jones. “but it is perhaps not so surprising when you consider that under the new rules the rate of SDLT on a second property, whether that’s the purchase of a buy to let property or a second home costing more than £40,000, will be subject to a 3% surcharge.
“Currently the rates are charged on the portion of the purchase price which falls within each band. But from the 1st April 2016 the SDLT rates charged on the purchase of a second home will be 3% on a purchase price of £0-£125,000, 5% on £125,001- £250,000, 8% on £250,001- £925.000, 13% on £925,000- £1,500,000 and 15% on property purchased for £1.5 million and above.
“I have received numerous enquiries regarding SDLT and a number of clients have been keen to find a second property and push through the purchase before the 1st April.”