To avoid paying the new Stamp Duty Land Tax (SDLT) rates, a Liverpool expert is advising anyone in the process of buying a property to “complete, not exchange” by the end of this month.

Ahead of reforms which will come into action on 1 April, Julia Casimo, partner at John Kerr Chartered Accountants, says: “Anyone who buys additional residential property, including second homes and buy-to-lets, will have to pay an extra 3% in stamp duty.

“There will be an additional 3% tax to pay on homes worth up to £125,000, 5% tax on homes that cost between £125,001 and £250,000, and so on.  Homes worth less than £40,000 do not pay the additional charge.

“Anyone in the process of buying a property must complete, not exchange, before midnight on 31 March to avoid the new higher rates.”

Julia adds that the lines can be blurred when applying the rules to family situations. She says: “For couples living together, only one property can count as the main residence, so the purchase of a second property will trigger the charge.

“For couples not living together it may be possible to avoid the charge when a second property is purchased, assuming the properties are held in the individual names”.

When first announced in November, the SDLT reforms concerned agents who believe that the new legislation will see rent prices rise.

Julia notes: “This is a significant change, and taken together with plans to limit relief on mortgage interest, may have a chilling impact on amateur landlords”.

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