Thinking about buying a second property?
How the Tax changes will affect you as a Buy-To-Let Landlord
Effective 1 April 2016, an additional charge of 3% rate on Stamp Duty Land Tax (SDLT) will apply to new purchases of second homes and buy-to-let properties worth over £40,000.00 whether purchased in personal names or as a company or trust.
The new charge applies to residential investment properties bought either by individuals or other non-personal entitles such as companies and trust.
The higher rates will only apply to purchases which complete on or after 1 April 2016.
If contracts are exchanged after 25 November 2015 then the higher rates will apply if the purchase is completed on or after 1 April 2016.
However, if contracts were exchanged on or before 25 November 2015 but not completed until on or after 1 April 2016, the higher rates will not apply.
Property owners with large portfolio however may be offered some relief. The HMRC has announced that it would introduce a form of relief to help certain investors with large portfolios. The latest consultation document is considering whether an exemption for bulk purchases of at least 15 residential properties in one transaction may be a better approach. The consultation process is expected to conclude on 1 February 2016.
If you would like some more advice on how you might be affected by the recent changes re the additional SDLT charge, please contact Ms Amaka Jackson on 0208 332 2069 or by email firstname.lastname@example.org