Cost of stamp duty due to increase for Buy-to-let homes
The chancellor has announced, landlords and second home buyers will soon pay a higher stamp duty.
As of April 2016 those in England and Wales will have to pay an additional 3% on each stamp duty band. The increased stamp duty is forecasted to raise an extra £1bn for the treasury.
Once the stamp duty surcharge commences each band will upturn by 3%. Meaning properties worth between £125,000 and £250,000, where the stamp duty is 2%, buy-to-let landlords will pay 5%. For the typical buy-to-let purchase of £184,000, that means they will pay an additional £5,520 from April 2016. Commercial property investors, with more than 15 properties, are predicted to be excused from the new charges.Buy-to-let landlords will also be faced with a change to Capital Gains Tax (CGT) rules. Instead of waiting until the end of the tax year to pay any CGT, starting from April 2019, landlords are to pay any CGT due within 30 days of selling a property.
Conversely, when you buy with Fortis Developments you are guaranteed a yield for 3 years. So if you’re in the market to purchase a property now is the time for you to act before the duty stamp surcharge commences.