If you are considering purchasing a buy-to-let property or a second home, it is necessary that you know the rules in determining your stamp duty. For instance, you will want to see how the 3% rise in rates for buy-to-let in April 2016 has been affecting landlord costs. It is that and many other such instances that determine the amount of stamp duty tax that you must pay attention to when purchasing any property in the UK.
The rates and the place of duty calculators
Unlike with first-time buyers, £125,000 is the value of a property above which the government requires that you begin paying stamp duty. Concerning the current duties, the rates start at 2% then to 5%, 10% and lastly to 12% under the £250,000, £925,000, £1.5 million and over £1.5 million properties, respectively. However, starting April 1, 2018, if you are buying a property in Wales, you will need to pay 7.5% in stamp duty for houses worth £400,001 to £750,000.
It is, therefore, necessary that you consider looking for a property stamp duty calculator that is up-to-date with these changes to know what exactly you will be paying.
Why these changes?
These reforms have been critical in ensuring the housing crisis does not grow worse, by creating regulations that will restrict old homeowners from declining to downsize. Following the past rules, stamp duty taxes have been reducing the rate people change houses by about a third, which means old homeowners hardly free up larger homes for young families to purchase.
Estate Agent experts advise that the market would speed up if future budgets would slash stamp duties that homeowners will need to pay. How would it be then if the government would scrap these taxes entirely? At least, more pensioners will be able to give up their houses as there will be no stamp duties putting off young families.