In his latest article, Beach Hut Specialist Richard Ramshaw discusses how much a beach hut is likely to set you back, why some are so expensive and the process involved in buying.
The Government has announced that higher rates of Stamp Duty Land Tax (SDLT) will come into effect from 1 April 2016.
Higher rates will affect additional residential purchases such as buy to let properties and second homes which will be subject to an additional 3% to the existing SDLT rates.
"It is worth noting, that there will be a transitional relief from the higher rates which will not apply if contracts were exchanged on or before 25th November 2015 and completion takes place on or after 1st April 2016," highlights Conveyancing Executive, Jennifer Smith.
The higher rates of SDLT will apply to the following:
- Married couples and civil partners living together will be treated as one unit and therefore will only be able to own one property between them.
- Purchasing a buy to let property or selling one investment property to buy another.
- Purchasing a main residence in the UK when owning a property abroad.
- Purchasing a new main residence and renting out your existing property.
- Parents purchasing a property for their children to live in when they already own a home.
There are some exemptions available from the higher rate. These include:
- Caravans, mobile homes and houseboats,
- Property worth less than £40,000,
- Married couples who have separated by a formal Deed of Separation or Court Order. Alternatively if couples are not divorced but are living permanently apart might not be treated as one unit.
- Inheriting a small share of a property within 36 months prior to purchasing another property.
- Purchasing a new main residence before disposing of the previous main residence, allows 36 months from completing the purchase to claim a refund of the higher rate.
For more information on the SDLT changes please read www.gov.uk/stamp-duty-land-tax.
Our Conveyancing Team, based in Christchurch, also cover Bournemouth, Poole and the New Forest. For a free initial chat, please call 01202 499255 and Jennifer or a member of the team will be happy to discuss any questions that you may have.
