2nd Property Stamp Duty to be Discussed

The details for the 2nd property additional stamp duty payment are still to be discussed before its implementation in April 2016.

Currently the amount of the tax has been confirmed (there will be an additional stamp duty tax of 3% of the purchase price due on properties over the value of £40,000) but more details need to be put into place as to when this additional tax should be applied. The government have also confirmed that caravans, mobile homes and houseboats will be excluded.

They have also currently confirmed that first purchases made through a company will be subject to the additional tax to stop people using this as a means of tax avoidance.

There are so many different circumstances that need to be taken into consideration so there is a consultation process asking a number of questions which is open to responses until 1 February 2016.

Some of the questions that the consultation addresses are as follows:

  • Should there be special circumstances applied in the case of a marriage breakup or separation?
  • How to treat joint purchasers as opposed to individuals where one purchaser may already own another property
  • Overlap when purchasing a new main residence
  • Whether 18 months is a reasonable time to expect someone to replace their main residence
  • Whether the purchase of 15 or more residential properties should trigger an exemption

If you have an interest in the consultation or have any points that you wish to reply on then you can find the details of the consultation document here.

2nd Property Stamp Duty to be Discussed

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