Stamp duty on Second Homes including Buy-to-Let
The Government confirmed that it will proceed with the proposed increase to Stamp Duty Land Tax when buying additional properties from 1st April 2016.
- New Stamp Duty Land Tax (SDLT) on commercial property is changing to the ‘slice’ system: 0% up to £150,000, 2% on next £100,000, 5% on consideration over £250,000.
- New 2% rate for high-value leases with net present value above £5,000,000.
- Buyers of commercial property worth up to £1,050,000 will pay less in stamp duty.
- Effective from 17th March 2016.
- Stamp Duty rates for leasehold rent transactions will also change, with a new 2% Stamp Duty rate on leases with a net present value over £5,000,000.
Capital Gains Tax
- From April 2016, the higher rate of Capital Gains Tax will be cut from 28% to 20% and the basic rate from 18% to 10%.
- There will be an additional 8 percentage point surcharge to be paid on residential property and carried interest.
- Capital Gains Tax on residential property does not apply to your main home, only to additional properties.
- Effective from 6th April 2016
- Headline rate of Corporation Tax – currently 20% – to fall to 17% by 2020
- Will benefit over 1,000,000 businesses