Stamp Duty Land Tax – Increased rates from April 2016

If you are a Landlord you must feel like a hunted animal this year!! 

It must feel like the Government has declared war on you and is determined to make you an extinct species!!

Strong words I know, but as a Letting Agent and Landlord myself my sympathies are with you.          

But is it all doom and gloom? Can we see a silver lining? 

My Lettings Team tell me the most common question Landlords are asking on our Ask Alan section on our website is:

'Can you explain what the effects the new stamp duty regulations mean to me? ' 

 Ask Alan  http://bit.ly/1JMmIWA

From the 1st April a new extra 3% stamp duty surcharge is going to be levied on most buy to let and 2nd home purchases.

At present 0% stamp duty is incurred on properties bought with values below £125000 - Now any property bought as a Buy To Let or 2nd home, with a value of between £40000 and £125000, is going to be subject to 3% stamp duty on the whole of the purchase price.

Properties over £125000 currently attract 2% stamp duty on the amount paid over £125000 up to £250000. The new regulations are going to add an extra 3% on top of this figure.

Examples from 01.04.16

Example 1:

£100,000 property bought as a primary home = 0% stamp duty

 £100000 property bought as a buy-to-let = £3000 stamp duty.

Example 2:

£200000 property bought as a primary home = 2% on £75000 = £1500 stamp duty 

£200000 property bought as a buy-to-let = 2% plus 3% surcharge = £3750 stamp duty 

But is this going to affect your long term plans to expand your property portfolio? 

These are questions we will address in forthcoming blogs.

We will address in future blogs other regulation changes that you will need to consider in the Buy To Let market.

I would welcome the opportunity to discuss other local investment opportunities with you in person and your requirements on the management and expansion of your property portfolio.

I hope you have enjoyed this blog as much as I have writing it 

If you want to discuss any Sales or Lettings issues in our local property market just email on the Ask Alan section of our new website.

http://www.alanbatt.co.uk/about-alan-standish-estate-agents-wigan/ask-alan.html

Alan Batt MRICS

Chartered Valuation Surveyor 

Best Price Specialist Estate Agent