Since April 2016, buy-to-let homes and second homes have been liable to higher rate stamp duty, this change brought in a 3% charge on any property purchases over £40,000.00 . The best way to calculate how much you will have to pay is by using a second home stamp duty calculator.
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The calculator will work out the tax due on completion of your purchase, stamp duty land tax is calculated on the price of property and the relative stamp duty bands, the purchase price can sometimes fall across two or more tax bands.
The benefit of using a second home stamp duty calculator is that it will show the breakdown of tax due on the value of the property which makes it much easier to understand. You have access to the second home stamp duty calculator by using the government website, so you can even check how much you will pay before putting an offer in on a property.
How do I use a second home stamp duty calculator?
Once you have opened the second home’s stamp duty calculator on the government website, it will take you through a series of questions. Some questions are multiple choice, others you must key in the information, but do not worry it is easy to understand and quick to use!
The second home stamp duty calculator will provide you with a full breakdown of how your stamp duty land tax is calculated once you have submitted your answers to all questions. Once you have purchased a property and agreed a price, your conveyancer will also use this tool to ensure you will pay the correct tax on completion.
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Overall the second homes stamp duty calculator is a quick and easy tool to work out how much tax you will pay when purchasing a second property.