New, extra 3% Stamp Duty on BTL?
Discussion
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.
WB,
We focus on this as a grab against pensioners using 'Freedoms' to buy property, but the guidance is clear too, in that if you own the one property (say, the small BTL was the first) and if you then buy another (the larger, more expensive PPR) - it then becomes your second property so you're liable for the extra tax on it, and not what is used as your BTL. So, to avoid the higher SDLT on the PPR you would need to offload your BTL first.
We focus on this as a grab against pensioners using 'Freedoms' to buy property, but the guidance is clear too, in that if you own the one property (say, the small BTL was the first) and if you then buy another (the larger, more expensive PPR) - it then becomes your second property so you're liable for the extra tax on it, and not what is used as your BTL. So, to avoid the higher SDLT on the PPR you would need to offload your BTL first.
Welshbeef said:
With all the best will in the world at the point of buying the house it was planned to be a main residence then let's say the day after you unfortunately lose both parents and inherit their "mansion" you decide to move into that and then let out the house you'd just bought.
So many issues
Have you reviewed HS283 which was updated earlier this year? Might that (i.p letting relief) help?So many issues
https://www.gov.uk/government/publications/private...
Eric Mc said:
Securing YOUR personal future at the risk of blocking access to house ownership to others may be considered a price the country can't afford - economically, socially or politically .
It does seem that the government has woken up to the dramatic social impact the rush to buy to let ownership has had on the country.
And perhaps surprisingly, it's a Conservative government that has seen the light.
Morality aside, I think we're in danger of conflating the subtleties of the issue here. It does seem that the government has woken up to the dramatic social impact the rush to buy to let ownership has had on the country.
And perhaps surprisingly, it's a Conservative government that has seen the light.
It's not so much second/third/fourth home ownership I have an issue with; rather, owning a second/third/fourth home(s) which are left (needlessly) empty and which may, reasonably, be otherwise rented out fairly. In my experience, the people who most have an issue with the moral hazard are those who have well funded (publically bolstered) pensions or decent ISA portfolios which lawfully negates nearly all tax.
The other practical issue is a financial one. Let's imagine that someone in their forties inherits some money they're thinking about investing somehow into a BTL. Rather than pay the c.£8000 they might reasonably be expected to, they decide to invest it into their pension instead. The government therefore, then has possibly a 40% payment to make on it, as well as possibly, the investor claiming their child benefit back.
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