One in ten of all UK property purchases will be affected
by changes in stamp duty charges from April 1st 2016 according to a
consultation paper issued by the government. The consultation paper makes clear
that the proposed stamp duty charge is an additional 3% on the whole of the
purchase price. So, for example under the current rules, stamp duty on a second
property costing £200,000 is £1,500. From 1 April 2016 this will rise to £7,500
– a 500% hike. According to the House Price Index the average price of a UK
property in November 2015 was £186,325 and house prices look to be on the
increase in many areas. The draft rules
are very tightly drawn so that the additional rate applies if ‘at the end of
the day of the transaction’ an individual owns more than one property. Download
the consultation from the Gov UK website.
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