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)|
|The next £675,000 (the portion from £250,001 to £925,000)|
|The next £575,000 (the portion from £925,001 to £1.5 million)|
|The remaining amount (the portion above £1.5 million)||12%||15%|
For more informations contact
Contact Christophe Chambon
+44 789 403 7290
Relocating in London may be challenging. French Touch Properties can help you to “mind the gap” !