If you're hoping to buy a property in the not-too-distant future there are a huge amount of things to consider from location and size to mortgages and home insurance.
But what about stamp duty? Do you understand the changes that have been made? Take a look at this guide to the stamp duty changes on buy-to-let properties for more information.
In the Autumn statement the Chancellor announced that stamp duty land tax would be increasing on buy-to-let properties. All UK buy-to-let investment properties now attract an extra 3% stamp duty surcharge, so long as the buyer already owns another property. This isn't good news for landlords as it covers most buy-to-let properties. For example a £500,000 property now attracts a whopping £30,000 in stamp duty which is £15,000 more than it was previously.
How does it work?
The first property you buy will always be exempt, whatever it is used for. Any additional properties you buy after this WILL attract the 3% surcharge.
Who does this affect?
Anyone buying their own home to live in will be exempt, but this isn't always the case. Buy-to-let landlords who've never owned their own home will have to pay the surcharge when they buy their main home. If you sell your main home now, you still have three years to buy a new one without paying the extra tax. But if you buy a new house without selling your old one, you will have to pay. However you can claim a refund as long as you sell your original home within three years.
The idea behind the tax was to discourage landlords from buying lots more properties and so there's no way to avoid it if you are subject to it. But, the tax does not apply to mobile homes, houseboats and caravans or to properties that are worth less than £40,000.
Still not sure you quite understand? Watch the video above in full and find out more about stamp duty here: gov.uk/stamp-duty-land-tax.