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
christophe@frenchtouchproperties.com
+44 789 403 7290
