Invest NOW & Beat the Stamp Duty Change
If you have been thinking about making your first property investment, would like to expand your buy-to-let portfolio or are dreaming of owning a holiday home, there is a window of opportunity between now and April 2016 that will save you thousands of pounds.
You may have read that Chancellor George Osborne used his Autumn Statement in November 2015 to introduce a new stamp duty band especially for those buying investment properties and second homes.
The new levy of at least 3% starts on 1st April 2016 and will be applicable on all property investment and second home purchases above £40,000. The extra money generated has been promised to fund more house building across the country, especially in areas where there is a supply and demand issue.
Mirroring the incremental stamp duty system the Chancellor introduced for purchases in his Autumn Statement 2014, purchasers of buy-to-let properties and second homes will pay a new sliding scale of stamp duty tax. There will be 3% on homes between £40,000 and £125,000, 5% on the portion to £250,000 and 8% to £500,000.
Here at Jones Robinson we wanted to illustrate the cost saving available to those who buy before 1st April 2016.
“While the new buy-to-let stamp duty levy came as a complete shock to the market the Chancellor, on reflection, has taken a step to balance his books after making the stamp duty bill cheaper on 98% of purchases in his Autumn Statement 2014,” comments Paul Broomham, Jones Robinson’s Lettings Director.
“As lettings experts, we are aware that buy-to-let is changing, especially as landlords will no longer be able to deduct the cost of their mortgage interest from their rental income when they calculate a profit on which to pay tax – to be phased in from April 2017. We are here to reassure potential landlords and established investors that buy-to-let is still a fantastic choice. With expert advice and careful planning, the rewards can still outperform stocks, shares and cash savings accounts – people just need to involve professional letting agents throughout the investment journey to make sure maximum returns are received.”
The Jones Robinson lettings department would be delighted to talk new and existing landlords through the changing lettings market. We currently have a great selection of properties for sale in Newbury, Thatcham and across West Berkshire ideal for investment purposes, and can conclude the purchase and place tenants well before the 1st April 2016. Contact us today for free advice.