If you’re thinking about investing in a buy-to-let property, it is important to act soon. Changes announced by Chancellor George Osborne in the 2015 July Budget are expected to come into effect from 1st April.
The changes are subject to a consultation which closed on 1st February and are due to be announced in the budget on 16th March 2016. These changes mean that you will have to pay much more Stamp Tax on property purchased after 1st April, making the venture less profitable.
What are the Proposed Changes?
It is expected that the March Budget will introduce a number of changes to tax rules and impose tighter regulations on individuals who purchase additional properties. This will impact particularly on buy-to-let landlords. This is expected to even apply to companies purchasing a first property.
• Higher rates of Stamp Duty Land Tax (SDLT) (3% above all of the current rates including the nil rate) will be charged on the purchase of additional UK residential properties which complete on or after 1st April.
What the Changes to Stamp Duty Will Mean to You
The changes will have a very significant impact on individual small scale buy-to-let landlords and investors. If you already have a number of buy-to-let properties or are looking to become a buy-to-let landlord, you should consider the impact these changes will have.
The higher rates of Stamp Duty Land Tax are likely to make buy-to-let more expensive to buy.
Anyone buying a £250,000 buy-to-let property before April 2016 will pay stamp duty of £2400 (This is based on paying 0% on the first £125,000 of the property value and 2 per cent on the portion between £125,001 and £250,000)
Those purchasing a buy-to-let property from this April, will have to pay 3 per cent for the first £125,000 and 5 per cent instead of 2 per cent on the amount between £125,001 and £250,000. This gives them a total bill of £10,000.
With such clear-cut savings by acting before April 2016, it is no wonder many people are looking to push through the purchase of their buy to let property.
Fast Track Buy-to-Let Conveyancing
Here at Burt Brill & Cardens solicitors we are able to use our experience and in-depth knowledge of buy-to-let conveyancing to push through your buy-to-let purchase before the changes come into effect.
• Fast, efficient service
• High quality
• Vastly experienced buy-to-let conveyancers
• Peace of mind that it will be done properly
Read more about our team.
Contact Burt Brill & Cardens Today
If you are looking to enter the buy-to-let market or to secure another property, it’s important to take action as soon as possible. The changes come into effect in April 2016 and delaying could mean you lose out on thousands of pounds. Call our expert team today on 01273 604123.