Spending Review 2015 – 3% increase on Stamp Duty for BTL and second homes

Reply to the comment left by "Steven Burman" at "25/11/2015 - 15:35":

Exactly my feelings, GO has sown and he must reap through consequences

BBC TV actually interviewed (albeit just a sound bite) a Landlord on BBC Breakfast this morning.

I'll try and find a link for this, or download it.

What if you buy a property with cash "That your going to move into", this avoids the BTL stamp duty, after a few weeks you decide actually the new house doesn't suit your needs and you move back to your old place and rent the new place out?

You can then take out a BTL mortgage on the new place?

Reply to the comment left by "Neil Patterson" at "25/11/2015 - 14:42":

Reply to Frank Nash of Blick Rothenberg - not sure I would want him as my accountant. The provision of a B2L loan and conveyancer's duties regarding money laundering and tax would both prevent someone just declaring a purchase to be their PPR. I'm just buying a property now and the pages of declaration from the solicitor are quite clear as to what they have to declare both to HMRC and the lender.

Reply to the comment left by "steve p" at "26/11/2015 - 08:03":

You could, but you'd be guilty of tax evasion. Likely as not, the lender/solicitor doing the remortgage would have to declare it.

I mentioned this to my other half last night and his response was "so we need to buy another property before April".

Ever the pragmatist.

What I don't understand is what the government is trying to achieve through this - are they trying to get private landlords to incorporate? If so, won't they get less tax off them that way? Or do they think the electorate hate private landlords that much?

Reply to the comment left by "Claire Oswald" at "26/11/2015 - 08:44":

Claire, what they are trying to achieve is increased revenue, and pushing small scale out of the process. The deal is that big business always gets a better deal than the small person.

First clause 24, so landlords who are small and personal think Oh dear I have to sell some time in the next 4 years because it's going to become a loss making venture. Or incorporate.

Second when moving property from personal to limited company to avoid clause 24 you have to buy the house, queue CGT and now increased stamp duty. This is my understanding and there might be other ways of doing this but nothing for the small scale BTL landlord. Yet they have mentioned something about 15 properties then you are exempt. So if you are larger scale it's going to be fine. And you get a Corporation tax soon to be 18 or 19%.

Many people will have released money from their pensions to buy a second house, if they did they will not have to buy before April, after April buy to let landlords will generate more tax for the government.

I for one am going to bow out of being a landlord in the near future, I believe I have a happy tenant. I have only one property and have a job which pays me a decent wage.

So to summarise.
1. small landlords will sell - Clause 24
2. small lordlords will incorporate - Clause 24
if they don't by April more stamp duty for the goverment.
3. small landlord will be put off buying property - both clause 24 and Stamp duty
4. after April it will be big companies doing the buying or people for living in with huge subsidies for the house builders given by the government.

Also note they are expanding buy to let to 5% deposit and up to 40% provided by the government. So not only will the Goverment be spending Billions on house building they will be fuelling the house market by lending the buyers money to buy the house from the housebuild who they subsidised to buy the house in the first place.

Reply to the comment left by "Tracey Hoad" at "25/11/2015 - 21:23":

Hi Tracey

I asked Alan Ward of the RLA your question

Hi Kathy
Thanks for the post.
The RLA’s proposal is about creating an environment in which landlords and tenants feel able to offer longer tenancies. At present, the RLA is aware that some landlords are restricted from doing so by mortgage lenders’ terms and conditions. Also, the RLA is concerned that in blocks of flats many leaseholders prohibit tenancies of longer than a year.

The survey seeks to establish the extent of the problem. It is about creating a more supportive environment in which landlords can voluntarily, where they want to, enter into longer tenancies without the need for heavy handed legislation.

Best

Alan

Autumn Statement 2015: SDLT rate increase on purchase of additional residential property

25th November 2015

Since December 2014, SDLT on residential property in England, Wales and Northern Island is normally payable based on the progressive rates ranging from 0% (up to £125,000) to 12% (over £1.5million).

A slab rate 15% SDLT can be applied on the purchase of “Higher Threshold Interest” residential property (valued at over £500,000), where no exemption applies.

From 1 April 2016, an additional 3% will be applied to the current SDLT rate for the purchase of additional residential properties above £40,000, such as buy to let properties and second homes.

The higher rate will not apply to purchases of caravans, mobile homes or houseboats, or to corporates or funds making significant investments in residential property.

There will be a further consultation on the policy detail, including whether an exemption for corporates and funds owning more than 15 residential properties is appropriate.

Following on from the Summer Budget, this legislation is yet another blow to buy to let landlords. The details of how the policy will be applied have not yet been published and it will be important for potentially affected taxpayers to participate in the forthcoming consultation process. For instance, it is not clear yet how this will impact the relatively common position of parents helping children to buy property or of Trusts which own a number of properties for different beneficiaries.

Reply to the comment left by "KATHY MILLER" at "26/11/2015 - 10:03":

Simples, don't buy any properties for 18 months, see how GO likes that