Stamp duty land tax (SDLT): additional properties
Following the first Autumn Statement and Spending Review of this Parliament, which took place on Wednesday 25 November, if you're thinking of buying additional residential property doing so before 1 April 2016 might save you 3% of stamp duty. The following information note has been provided by accountant Tony Tesciuba, of Tesciuba Limited:
The Chancellor announced his intention that higher rates of SDLT will be charged on purchases of additional residential properties (above £40,000), such as buy to let properties and second homes, from 1 April 2016. The higher rates will be three percentage points above the current SDLT rates.
The higher rates will not apply to purchases of caravans, mobile homes or houseboats, or to corporates or funds making significant investments in residential property. The government will consult on the policy detail, including on whether an exemption for corporates and funds owning more than 15 residential properties is appropriate.
The Chancellor stated that 'more and more homes are being bought as buy to lets or second homes and frankly, people buying a home to let should not be squeezing out families who can't afford a home to buy'
Although a 3% hike on stamp duty can be described as an unwelcome shock, when viewing the bigger, longer term picture, is it really so bad? For initial
industry thoughts and reactions, you'd do well to read this article, along with the "comments" section...