Time to invest in buy-to-let!

The government has announced a significant increase in the “stamp duty” tax on real estate purchases known as “buy to let” (rental revenue investment). This new tax, called “Landlord Tax” is announced for 1 April 2016. Investors who buy, after that date, a second home or property to be leased will have to pay 3% in addition to the stamp duty already in place . This is a significant increase. Thus, the stamp duty on property of £ 450K will increase from £ 12.500 to £ 26,000 … enough to replenish the State coffers.

So if you are thinking of investing in a London “buy to let” property, you’d better do it before 1 April and therefore … get started now because the buying process lasts at least two months!

Comparison Chart residential stamp duty (you will live in the property) / rental (you will rent the property)

The stamp duty is calculated by bracket:

Property value  Stamp duty rate for owner-occupiers  Stamp duty rate for second property/buy-to-let 
(No duty payable properties costing under £40,000)
Up to £125,000 Zero 3%
The next £125,000 (the portion from £125,001 to £250,000) 2% 5%
The next £675,000 (the portion from £250,001 to £925,000) 5% 8%
The next £575,000 (the portion from £925,001 to £1.5 million) 10% 13%
The remaining amount (the portion above £1.5 million) 12% 15%

For more informations contact

Contact Christophe Chambon


+44 789 403 7290