In April of this year, the Government is proposing to change the rules of Stamp Duty Land Tax (SDLT). These new rules will affect those who own a second property (or more), meaning that any additional properties purchased costing more than £40,000 will become subject to a higher rate of tax than at present.
Whilst the proposals are still to be set in stone the changes will affect buy-to-let landlords, second home/holiday home owners, someone who owns a property but is buying another with a first-time-buyer partner and even parents who are jointly purchasing a property with their child to help them onto the housing market. With house prices still on the rise, many parents may wish to help their child achieve their ambitions by jointly purchasing a property with them, but the proposed changes will make that an expensive option. Parents who hand over cash towards a property purchase and/or act as a guarantor on the child’s mortgage will not be affected by these changes.
With these proposed changes approaching imminently it is important to fully understand what this really means and how this may affect you if they are imposed. Our specialist property team are experts in understanding and advising on stamp duty and have been keeping thoroughly up to date with the proposed changes that are being discussed in the Government. The team can help provide advice and guidance on all elements of buying and selling your property. If you have any questions or would like to discuss this further please get in touch.