Spending Review 2015 – 3% increase on Stamp Duty for BTL and second homes
The Chancellor George Osborne in his spending review today announced that he will increase Stamp duty for Buy to Let properties and second homes with a surcharge of 3% from April 2016.
The Chancellor said he wanted to change from generation rent to generation buy. He was concerned that Cash Purchasers and foreign investors, who were not affected by the relief cap of 20% on mortgage interest, along with Buy to Let investors were squeezing out home buyers. Therefore there will be an increase of 3% in stamp duty for non-main residence purchasers, which would also raise an additional £1bn in tax.
The Housing budget will now be doubled to £2bn per annum and a project to build 400,000 new affordable homes to buy will be started. Osborne said “this government chooses to build.”
These affordable homes will be offered to First Time Buyers at a discount of 20%, and 135,000 new homes will be offered under Help to Buy shared ownership.
A London Help to Buy scheme will offer interest-free loans up to a maximum of 40% of the value of a newly built home.
Restrictions on shared ownership will be removed and the planning system reformed to deliver more homes.
Councils will also receive an additional £10m to help homeless people.
It is the Chancellors clear policy to help solve the housing crises by building more homes and squeezing the competitiveness of the Private Rental Sector thus shifting the balance from renting to home ownership.
Commercial property investors, with more than 15 properties, are expected to be exempt from the new charges.
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Landlord tax changes will lead to rent increases - survey says
Member Since September 2015 - Comments: 47
6:35 PM, 4th December 2015, About 10 years ago
So let me try and understand…..a person with one residential property and one buy to let. He moves home…..if sells residential to buy new residential. ….he /she will or won’t pay increased stamp duty?
Member Since September 2015 - Comments: 237 - Articles: 4
8:07 PM, 4th December 2015, About 10 years ago
Reply to the comment left by “Christopher Marsden” at “04/12/2015 – 17:48“:
They haven’t and won’t. They know which bits they can take to law and which they can’t. This is definitely anti-competitive but is not expressly forbidden in law, so I doubt there’s a case to be had.
Member Since September 2015 - Comments: 47
11:43 PM, 4th December 2015, About 10 years ago
http://www.cityam.com/229930/stamp-duty-was-already-bad-tax-buy-let-surcharge-makes-it-even-more-stupid?utm_source=TPA+Supporters&utm_campaign=895e72a4a2-151023_TPA_Bulletin10_23_2015&utm_medium=email&utm_term=0_fded8e0455-895e72a4a2-417855925&mc_cid=895e72a4a2&mc_eid=f5bcd2a33f
Member Since September 2016 - Comments: 2533 - Articles: 73
12:15 AM, 5th December 2015, About 10 years ago
Reply to the comment left by “Costas Tzanos” at “04/12/2015 – 23:43“:
That was interesting. I’ve often thought we should contact the Taxpayers Alliance, but haven’t got around to it. I wonder what they think of the ‘crazy tax.’
Member Since May 2015 - Comments: 2187 - Articles: 2
8:08 AM, 5th December 2015, About 10 years ago
Reply to the comment left by “Costas Tzanos” at “04/12/2015 – 23:43“:
This article confirms my view, held since the Alice tax was first proposed, that NOTHING this government is doing will actually improve the housing situation for anyone, landlord of tenant. What it will do is give the esteemed Mr Osborne a desperately needed cash cow – the consequences will be felt by the next government by which time Mr Osborne will have a nice state pension.
Further I believe that all the extra legislation being hurled at landlords will do little to improve property standards but has added a whole tranche of additional and unnecessary red tape to the business (and for the record it is a business no matter what anyone says).
All this from a government which promised no increase in taxation and a reduction in Red Tape
Member Since September 2013 - Comments: 771
8:41 AM, 5th December 2015, About 10 years ago
Reply to the comment left by “David Price” at “05/12/2015 – 08:08“:
Well said David
Comments: 46
2:57 PM, 5th December 2015, About 10 years ago
Reply to the comment left by “Ros .” at “01/12/2015 – 15:39“:
Exactly. I read through the whole thing, which is mainly gobbledygook to me, but with regard to the mortgage section, BoE doesn’t seem unduly concerned by the current status of the BTL sector. They raise theoretical concerns about possible de-stabilisation in the event of unexpected interest rate rises. I’d hazard a guess most of us are prepared for interest rate rises and have factored that into our plans. So in response to concerns of a possible (however unlikely) de-stabilisation, GO introduces changes which will throw the whole market into immediately devastating turmoil. That makes sense.
Member Since April 2014 - Comments: 306
7:01 AM, 6th December 2015, About 10 years ago
Reply to the comment left by “Costas Tzanos” at “04/12/2015 – 18:35“:
See comment copy/pasted below left a couple of pages back by Seething Landlord which seems to indicate from reading Paul Lewis’s blog; “not”. This of course is not a given until such time we hear this from the horses mouth:-
The position regarding the house you live in and what happens if you want to move and buy a replacement is covered in Paul Lewis’ blog at
http://paullewismoney.blogspot.co.uk/2015/11/stamping-on-additional-homes.html
Member Since December 2014 - Comments: 16
10:24 AM, 6th December 2015, About 10 years ago
I just wondering If a landlord want to change the residential property ie sell own one and buy a new one. Is that count towards 3% extra stamp duty? If yes that means we can’t move home ? ! If not then we can keep moving …. ( of course no BTL mortgage involved ) any ideas?
Cissie
Member Since September 2015 - Comments: 47
11:27 PM, 6th December 2015, About 10 years ago
Reply to the comment left by “Laura Delow” at “06/12/2015 – 07:01“:
So effectively….if you have not bought btl in Ltd company your investments now become a real liability if you want to move home. Hmmmmm.