2nd home Mortgage Calculator2. at home mortgage calculator
As from 1 April 2016 anyone buying a home in excess of their principal home will be paying an extra 3% SDLT for the first £125,000 and 5% instead of 2% on the share between £125,001 and £250,000 and 8% on the amount over £250,001. E.g. if you purchased a purchase to let real estate after 1 April 2016 for 350,000 you would be paying 3% on the first 125,000 pounds, 5% on 125,001 - 250,000 pounds and 8% on the part falling above 250,001 pounds.
Costing: Whose payment is the higher SDLT? According to the new proposal, all real estate buyers acquiring an extra home in addition to their principal domicile in England, Wales and Northern Ireland will be affected by the increase in SDLT. When you already own real estate, but are planning to buy a solid house to substitute another, you are exempted from payment of the higher installment.
Refunds are possible if you have sold your former home within 36 month. Is there any type of real estate that is exempted from this type of taxation? Trailers, boats, mobile home and real estate under 40,000 are excluded from the higher SDLT rating. If either of them has more than one home, however, both can afford to buy another home at the higher price.
Treasury sketches various real estate transactions structure. Buying a home for their kids on their behalf and already owning their home, a parent is willing to buy a higher SDLT as they will own two homes. If, however, a parent donates funds to a bond but does not own the item with their own son or daughter, the higher SDLT will not be applicable.