Time is running out to escape the stamp duty surcharge on buy-to-let properties and second homes and the cost of failure is high.
Tax specialists have warned that many could be caught out because the deadline is 1 April, rather than the start of the new tax year on 6 April.
Missing the deadline by a day would increase the stamp duty on an average property in England and Wales, which costs £188,270, by a hefty £5,648. In London it could add more than £15,000 to the cost of the average property purchase.
Chris Springett, director at accountancy firm Smith & Williamson, said anyone looking to buy a second home, residential buy-to-let or investment property must be sure they can complete by midnight on 31 March 2016.
This applies unless contracts were exchanged on or before 25 November 2015.
Springett said: “Missing the date by a few days could cost thousands of pounds and I fear many people could inadvertently miss out.”
The stamp duty charge on a property costing £188,270 is currently £1,265, but this will rise fivefold to £6,913 from 1 April, some £5,648 extra.
Stamp duty on the average London property costing £514,097 will more than double from £15,704 to £31,127.
Springett added: “The changes are due to apply from April Fool’s Day, so anyone seeking to buy a second home, buy-to-let or residential investment property should keep this in mind.”
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
.png)
Join the conversation
Be the first to comment (please use the comment box below)
Please login to comment