House Critic

Stamp Duty for Buy to let and second homes will now be +3% –

supports families buying their own home through a 3 percentage point surcharge on rates
of Stamp Duty Land Tax on purchases of additional properties like buy to lets and second
homes

This comes in April 2016.
So will there be a frenzy of BTL and second home buying before then? Maybe – maybe not. BTL is already looking less juicy after changes to the way tax is dealt with.

Read the full Autumn 2015 statement here

From the statement:

Higher rates of Stamp Duty Land Tax (SDLT) will be charged on purchases of
additional residential properties, such as buy to let properties and second
homes, with effect from 1 April 2016. The higher rates will be 3 percentage
points above the current SDLT rates. The government will use some of the additional
tax collected to provide £60 million for communities in England where the impact of
second homes is particularly acute. The tax receipts will help towards doubling the
affordable housing budget. This will help first time buyers.

3.70 Stamp duty land tax: additional properties – Higher rates of SDLT will be charged
on purchases of additional residential properties (above £40,000), such as buy to let properties
and second homes, from 1 April 2016. The higher rates will be 3 percentage points above the
current SDLT rates. The higher rates will not apply to purchases of caravans, mobile homes or
houseboats, or to corporates or funds making significant investments in residential property
given the role of this investment in supporting the government’s housing agenda. The
government will consult on the policy detail, including on whether an exemption for corporates
and funds owning more than 15 residential properties is appropriate. The government will use
some of the additional tax collected to provide £60 million for communities in England where
the impact of second homes is particularly acute. (5)

Details to come apparently. From Paul Lewis’ twitter (BBC Money Box) who I assume has asked, but this obviously isn’t direct Treasury source:

*Treasury will be issuing consultation on 2nd home SDLT plans ‘shortly’ to deal with fiddly bits eg parent helps child by jointly buying flat
*Buy to Let landlords must pay 2nd home SDLT even if through company unless have 15+ properties. That number may come down. Consultation.
*Have a home. Buy 2nd without selling 1st eg down- or up-sizing. Will pay 2nd home SDLT but if sell 1st within 18months can reclaim extra.
*Foreign buyers will have to fill in same form and be liable for second home SDLT if have home in other country. Treasury consulting on this
*Unmarried couples can pay 1st home SDLT on 2nd if own one each. Married couples will pay 2nd home SDLT even if each owns one.