14:30 PM, 25th November 2015, About 10 years ago 224
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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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steve p
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Sign Up0:35 AM, 7th December 2015, About 10 years ago
Reply to the comment left by “Costas Tzanos” at “06/12/2015 – 23:27“:
Not necessarily, if you want to add your previous property to your rental portfolio then yes but it seems as long as you sell your previous property the SDLT can be claimed back..
Although saying that every time I have actually bought a house for myself ive been extremely stretched, having to pay possibly £9000 extra or more and having to claim it back later (god knows how long that will take) could be a pain.
James dengel
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Sign Up11:22 AM, 7th December 2015, About 10 years ago
Reply to the comment left by “Costas Tzanos” at “06/12/2015 – 23:27“:
Indeed this is my worry, since you have two homes.
say you have a flat worth 100K in the north but want to move home in london for 500K
would you be liable for 3% extra on the 500K ?
seems a bit of a gamble to not view it that way when the extra tax is 15K….
Puzzler
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Sign Up8:17 AM, 8th December 2015, About 10 years ago
Can SDLT not be claimed back after sale anyway from the CGT?
Costas Tzanos
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Sign Up19:00 PM, 10th December 2015, About 10 years ago
Is the government expected to clarify the new sdt rules before end of Dec? Anyone know own if a timetable was published?
Big Blue
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Sign Up20:41 PM, 10th December 2015, About 10 years ago
Yes. Consultation paper due 18 December.
James dengel
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Sign Up10:00 AM, 11th December 2015, About 10 years ago
Reply to the comment left by “Puzzler ” at “08/12/2015 – 08:17“:
not claimed back, but yes I believe there is relief on it.
So if you don’t make enough of a gain, then you are paying the extra no matter what.
steve p
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Sign Up16:27 PM, 11th December 2015, About 10 years ago
I think a sensible way to say is if its an additional home then you pay the SDLT but if you live in the property for 18months then you can claim back the extra. Thus stopping flipping but keeping your primary residence clear of the new tax.
Of course government and sensible ideas dont tend to go hand in hand.
Saeef Khan
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Sign Up18:05 PM, 11th December 2015, About 10 years ago
Reply to the comment left by “steve p” at “07/12/2015 – 00:35“:
Steve,
This is common misconception that CGT can be claimed back when you come to sell it. Maximum rate of CGT is currently 28% so if you have spent £10000 then you can only back £2800 as opposed to full £10000.
I.e 28% of £10000 = £2800 alternatively if you are basic rate tax payer you can only claim back £1800
NOT £10000 spend and then claim back £10000 and that’s considering if you gain is more than annual exemption allowance.
Alison King
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Sign Up18:37 PM, 11th December 2015, About 10 years ago
Reply to the comment left by “Saeef Khan” at “11/12/2015 – 18:05“:
I think Steve was talking about SDLT not capital gains tax.
Saeef Khan
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Sign Up18:45 PM, 11th December 2015, About 10 years ago
Reply to the comment left by “Alison King” at “11/12/2015 – 18:37“:
Apologies, if I misunderstood it, but I thought Stamp Duty can only be claimed back legitimately would be by offsetting against CGT bill when you sell your asset.
My response was to following text:
“Although saying that every time I have actually bought a house for myself ive been extremely stretched, having to pay possibly £9000 extra or more and having to claim it back later (god knows how long that will take) could be a pain.”