As of the 1st April 2016, people purchasing second homes or buy to let properties will have to pay a 3% surcharge on each stamp duty band. That means that for properties worth between £125,000 and £250,000, where the stamp duty is 2%, those buying a second home or buy-to-let property will pay 5%, and for properties worth more than £250,000 and up to £925,000, where the stamp duty is 5% on the balance, those buying second home or buy-to-let property will pay 8% on the balance.
Previously, in 2014 the way stamp duty rates for residential purchases are calculated within England and Wales were changed. The old structure was replaced with a progressive scale of charges levied on all transactions over £125,000. The new percentages apply to the value above each threshold up to the full purchase price, for example, in the same way that income tax operates.
If you're preparing for your next move or looking to release equity for investment, it's essential to get an up-to-date valuation from an experienced local property expert.