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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Landlord tax changes will lead to rent increases - survey says
Samuel Powell
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Sign Up20:58 PM, 1st March 2016, About 10 years ago
Hi
So I’m currently buying a property with my fiancee. It’s her first purchase. I own a property that is currently on a consent to let.
As I’m self employed I need to wait till April for a year’s tax return to be able to get extra borrowing from my consent to let where all my equity is.
With the new tax coming place in April it’s going to cost us £6250 instead of £1000 stamp duty because I already own a house and I’m not selling it.
I’m thinking if I just had it in my partners name as its her first purchase? We are getting married in 2 years so it will become both of ours then anyway.
Any advice???
Troydave
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Sign Up22:15 PM, 1st March 2016, About 10 years ago
I am in a similar position to Samuel.
I already own my own property and have several buy to let’s .
I am getting married to my partner later this year who has no property.
Could she buy a property using my finances and then add me to the deeds without the need to pay the second property stamp duty ?
Si G
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Sign Up12:09 PM, 6th March 2016, About 10 years ago
Reply to the comment left by “Neil Patterson” at “29/02/2016 – 18:49“:
Hello Neil, I know we’re all waiting for the draft bill but do you know does 2nd home sdlt apply to ltd’s too (unlike mortgage interest clawback) and will it apply to plots for self build also 3% is so misleading that’s only the starting rate
BTL INVESTOR SCOTLAND
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Sign Up20:51 PM, 9th March 2016, About 10 years ago
interesting debate in the Scottish Parliament about the 3% LBTT levy. Labour said that there could be adverse consequences for the private rented sector and rents could go up.
http://www.theyworkforyou.com/sp/?id=2016-03-08.5.0&s=landlord#g5.17