2016 Budget Stamp Duty Land Tax Update

As from 17 March 2016, the Stamp Duty on non-residential property has been changed.

The rates are now as follows:

Portion of the transaction valueSDLT

Part up to £150,0000%

Part between £150,001 and £250,0002%

Part over £250,0005%

This replaces the previous flat percentage rate system and mirrors the way residential property is taxed.

As from 1 April 2016, an additional 3% charge to Stamp Duty will apply to purchases of residential property where you already own another property.

The main relief is where you are purchasing the property as your home and you sell your current home at the same time or you sold it within the 3 years before. If you sell your current home within 3 years after you purchase the new property, you will pay the additional 3% on the purchase, but would then reclaim this back when you sell.

The regular rates for residential property are as follows:

Portion of the transaction valueSDLT

Part up to £125,0000%

Part between £125,001 and £250,0002%

Part between £250,001 and £925,0005%

Part between £925,001 and £1.5 million10%

Part over £1.5 million12%

Therefore, where the 3% addition applies, the rates are as follows:

Portion of the transaction valueSDLT

Part up to £125,0003%

Part between £125,001 and £250,0005%

Part between £250,001 and £925,0008%

Part between £925,001 and £1.5 million13%

Part over £1.5 million15%