Stamp Duty Hikes
16 December 2015
Chancellor George Osborne announced the rate hikes, which will apply to any additional residential property costing more than £40,000, in today's Autumn Statement.
The changes mean someone purchasing a £275,000 buy-to-let home would see their stamp duty bill rise from £3,750 to £12,000 – nearly three times as much.
The surge in buy-to-let popularity over the past few years is often blamed for preventing first-time buyers getting on the property ladder. For a full explanation of how buy-to-let works, see our free, printed Buy-to-let guide.
Osborne said today: "Frankly, people buying a home to let should not be squeezing out families who can't afford a home to buy."
Under stamp duty rules that took effect last year, you pay different rates for different proportions of the property price. This will mean that the following additional property stamp duty rates will apply on each portion of the purchase price on buy-to-let and second homes.