If I buy now, what are the bandings for BTL stamp duty?

Question

If I buy now, what are the bandings for BTL stamp duty?

Answer

The bandings are:

  • 3% tax to pay on homes worth up to £125,000,
  • 5% tax on homes that cost between £125,001 and £250,000,
  • 8% on homes worth between £250,001 and £925,000.
  • 13% on homes worth up to £1.5 million
  • 15% on properties priced above £1.5 million
Depending on where you are looking to buy, this can have a huge impact on the price of an investment property. Based on average house prices from the latest Nationwide house Price Index (March 2016), buyers can expect to pay the following: Average price in London: £455,984 = £26,426 stamp duty (compared to £12,799 residential stamp duty) Average price in the South East: £255,325 = £10,426 stamp duty (compared to £2,766 residential stamp duty
  • Average price in the South West: £221,703 = £8,585 stamp duty (compared to £1,934 residential stamp duty) Average price in East Anglia: £204,948 = £7,747 stamp duty (compared to £1,599 residential stamp duty)
  • Average price in the West Midlands: £168,585 = £5,929 stamp duty (compared to £872 residential stamp duty)
  • Average price in the East Midlands: £162,082 = £5,604 stamp duty (compared to £742 residential stamp duty)
  • Average price in Yorks & H’side: £144,361 = £4,718 stamp duty (compared to £387 residential stamp duty)
  • Average price in Wales: £141,525 = £4,576 stamp duty (compared to £331 residential stamp duty)
  • Average price in the North West: £144,914 = £4,746 stamp duty (compared to £398 residential stamp duty)
  • Average price in the North: £123,864 = £3,716 stamp duty (compared to £0 residential stamp duty)

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