Stamp Duty stinger
10 January, 2017
Lots of parents are looking for ways to help their children get onto the property ladder but there could be a problem. If you want to help your offspring by taking a share in the property, say as 20% owner, be aware that you will be acquiring an interest in an additional residential property which is not your principal residence. This means that the higher rates of Stamp Duty Land Tax (“SDLT”) will apply. SDLT is payable by buyers.
These higher rates apply from 1st April 2016 and are as follows:
|
Purchase price of property |
Rate paid on portion of price within each band |
|
Up to £125,000 |
3% |
|
Over £125,000 and up to £250,000 |
5% |
|
Over £250,000 and up to £925,000 |
8% |
|
Over £925,000 and up to £1,500,000 |
13% |
|
Over £1,500,000 |
15% |