Residential Estate & Letting Agents in Bournemouth
Bournemouth Office: 01202 789699
Winton Office: 01202 512520

Clifftons Property Agents: Latest Property News

Buy to Let buyers face higher Stamp Duty

Buy to Let Landlords and people buying second homes, announced today by George Osborne, will pay more in Stamp Duty Tax. 

From April 2016, those in England and Wales will have to pay a 3% surcharge on each Stamp Duty bracket.

The stamp duty surcharge will lift each band by 3%. That means that for properties worth between £0 to £125,000 will pay 3%. £125,001 to £250,000, where the stamp duty is 2%, buy-to-let landlords will now pay 5%. £250,001 to £925,000 will be 8%. £925,001 to £1.5m will be 13% and over £1.5m will be 15%.

George Osborne thinks the new surcharge will raise £1bn for the Treasury by 2021, except, I think it will have the opposite effect. This will undoubtedly put off would be Landlords and existing Landlords from buying further. These Landlords pay tax on the rental income and I personally believe the new levels of Stamp duty will be offset from the income tax lost from rental incomes. I’m not an economical adviser but this is surely common sense.

It sounds like a last minute knee jerk reaction to try and make up the gain required in revenue.

A fluid housing market is important due to a homeowner or buy to let investor, when completing the sale, instructs electricians, plumbers, kitchens and bathrooms, furniture – most of the economy is built around a moving property market.

However, whilst it might “choke off” investment in rented properties, its good news for homeowners and first time buyers who will have a competitive head start to buying their main residence against buy to let landlords.

.                                                 First Home   /   Buy to let/second property

Purchase Price £100,000 –       Zero                        £3,000

Purchase Price £125,000 –        Zero                       £3,750

Purchase Price £150,000 –        £500                      £5,000

Purchase Price £175,000 –        £1,000                    £6,250

Purchase Price £200,000 –      £1,500                     £7,500

Purchase Price £250,000 –       £2,500                    £10,000

Purchase Price £300,000 –      £5,000                    £14,000

Purchase Price £400,000 –       £10,000                 £22,000

Purchase Price £500,000 –       £15,000                  £30,000

Purchase Price £750,000 –       £27,500                  £50,000

Purchase Price £1m –                 £43,750                   £73,750

James Scollard – Clifftons Estate & Letting Agents – 01202 789699

 

 

 

Share this story :
Follow by Email
Facebook
Google+
http://www.clifftons.com/buy-to-let-buyers-face-higher-stamp-duty/
SHARE

Posted: 25th November 2015

<< More Property News Article >>