New, extra 3% Stamp Duty on BTL?

New, extra 3% Stamp Duty on BTL?

Author
Discussion

Ginge R

Original Poster:

4,761 posts

218 months

Wednesday 25th November 2015
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Extra 3% Stamp Duty on Buy to Let from next year. Anti avoidance measures? Stand by for a stampede if not. It won't kill BTL but it will sort the men from the boys, the chancers, the spivs and the speculators.

GT03ROB

13,207 posts

220 months

Wednesday 25th November 2015
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How does he define what is & is not a BTL when buying a property?

PurpleMoonlight

22,362 posts

156 months

Wednesday 25th November 2015
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It will raise £1BN apparently.

Catches second homes too, not just BTL's.

JamieBeeston

9,294 posts

264 months

Wednesday 25th November 2015
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GT03ROB said:
How does he define what is & is not a BTL when buying a property?
Suspect it will be for any home purchased in addition to a primary residence.

gibbon

2,182 posts

206 months

Wednesday 25th November 2015
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Its not directly a BTL tax, its on any second property.

I wonder if you will be allowed two properties per couple say? Or do you have to solely own one each.

I think it will hurt the affluent second home in the country lot quite a lot, 15% stamp now? Crickey.

onedsla

1,114 posts

255 months

Wednesday 25th November 2015
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Coupled with the April changes, this sounds like a good way to push up rent, making it even harder for first time buyers to build deposits.

KTF

9,787 posts

149 months

Wednesday 25th November 2015
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GT03ROB said:
How does he define what is & is not a BTL when buying a property?
Thats what I wondered as well as it will be interesting to see what the 'test' is.

Some Gump

12,671 posts

185 months

Wednesday 25th November 2015
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onedsla said:
Coupled with the April changes, this sounds like a good way to push up rent, making it even harder for first time buyers to build deposits.
Rents are a function of demand / supply, not a function of cost to purchase. In fact, the cost part is driven by the rents - not the other way round. Putting 3% more SD on the BTL sector will marginally ease the competition between FTB's and wannabe landlords, potentially reducing the market price of a house slightly, but I can't see any way mechanism where SD will impact market rate for rentals.

andy_vtec

355 posts

240 months

Wednesday 25th November 2015
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So, an extra 3% SD on 2nd homes. Currently our 1 and only home is jointly in mine & wife's names - Is it possible to put our current home in to 1 of our names only, and the other to then purchase a 2nd home in their name only and avoid the extra 3% SD?

I suspect this would not be allowed, but does anyone know for sure?

poocherama

396 posts

208 months

Wednesday 25th November 2015
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andy_vtec said:
So, an extra 3% SD on 2nd homes. Currently our 1 and only home is jointly in mine & wife's names - Is it possible to put our current home in to 1 of our names only, and the other to then purchase a 2nd home in their name only and avoid the extra 3% SD?

I suspect this would not be allowed, but does anyone know for sure?
Treasury has I think confirmed that unmarried couples will be able to do this.

Burgmeister

2,206 posts

209 months

Wednesday 25th November 2015
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The 3% kicks in at homes >£40k too, not the usual £125k. A canny move considering the values of most BTL properties.

gibbon

2,182 posts

206 months

Wednesday 25th November 2015
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poocherama said:
Treasury has I think confirmed that unmarried couples will be able to do this.
Finally! A government incentive to stay unmarried! Brilliant, might buy me a little more time...

gibbon

2,182 posts

206 months

Wednesday 25th November 2015
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I asked this on the other thread running about this, but what do we think about someone in the position of owning a buy to let for some time, and their main residential property some time. Should you wish to sell and move residential property will you pay an extra 3% stamp duty? Thats really going to sting a few people.

SJK

119 posts

107 months

Wednesday 25th November 2015
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As a property insurance broker with landlords insurance being the bulk of what we, this additional announcement concerns me.

I had planned on building up a portfolio of my own. Interested to hear from prospective and current BTL landlords on your plans going forward in light of the latest announcements. Putting you off?

sawman

4,915 posts

229 months

Wednesday 25th November 2015
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Having been overseas for a few years, I currently live in a rented property, but have a flat which is rented out (bought as a foothold in the uk market whilst overseas) , does this mean that I will have to cough the extra 3% if I buy a primary residence whilst still owning my flat?

If anyone wants to buy a flat in Ipswich, PM me.....

Edited by sawman on Wednesday 25th November 20:51

Ginge R

Original Poster:

4,761 posts

218 months

Wednesday 25th November 2015
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SDLT examples from Treasury: A £200,000 property will cost you £1,500 SDLT if it's your first home, £7,500 SDLT if it's your second. A £500,000 home will cost you £15,000 if it's your first home, but £30,000 if second. If you're in the market for a £200,000 BTL, you'll pay an extra £6,000 upfront.

thekingisdead

236 posts

132 months

Wednesday 25th November 2015
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Can anyone advise;
I own 1 BTL and 1 residential property, if I were to sell my primary residence to purchase another primary residence, would this incur the additional 3%? Technically (pedantically?) I am not purchasing an additional property.

Bradgate

2,819 posts

146 months

Wednesday 25th November 2015
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Hopefully this is just the start of the government using the tax system to strongly disincentivise not just BTL, but residential property speculation more widely.

It is a national disgrace that speculators can own dozens of homes, while others have none.

Property prices and rents are both far too high, and if these measures are the start of government action to reverse both, Britain will be better for it.

Garybee

452 posts

165 months

Wednesday 25th November 2015
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Bother. I was looking at selling off a couple of places (110-120k price range) next year but this will kybosh that plan. Had to happen though, the current situation is very unfair for anyone looking to buy their first house. This seems like a good way to do it too.


Ginge R said:
It won't kill BTL but it will sort the men from the boys
Is one of the most stupid comments that I've ever read on here, but fairly typical of the elitist nonsense that I've come to expect. Expendable income, the definition of what makes a man.

pauldavies85

423 posts

185 months

Wednesday 25th November 2015
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^ dream on. The wealth divide has never been bigger and will continue to grow.


I think the changes in taxation on mortgage interest has a much greater effect.