George Osbourne announces a 3pc rise in stamp duty from 1 April 2016 for all BTL properties and those who are buying second homes. Based on the average BTL purchase price, this means an increase of around 368pc!
Released in it's Autumn Statement, the UK government has confirmed an increase in Stamp Duty Rates for properties being purchased for Buy-to-Let or as a second home
The governmnet's initiative for what Chancellor George Osborne identifies as a "growing crisis of home ownership" in Britain, is to increase Stamp Duty Land Tax on Buy-to-Let ad second homes.
This means from April 2016, those in England and Wales will have to pay a 3% surcharge on each stamp duty band. If we take the average buy-to-let purchase of £184,000, that means an extra £5,520 from April 2016 will need to be paid in Stamp Duty - An increase of 368%!
What this means for Landlords and Second home owners?
View our table below to see how this may impact you
Stamp Duty Rates (on purchases)
Buy-to-let/second home rate (April 2016)
Up to £125,000
£125 - £250,000
£250 - £925,000
£925 - £1.5m
There is also talks for a change in Capital Gains Tax (CGT) that will target landlords.
The additional stamp duty will not apply to caravans, mobile homes or houseboats. Mr Osborne said the property tax would raise almost £1bn by 2021, which will help fund the construction of new homes. Around £60m will go to communities in England where the impact of second homes is particularly acute, such as Cornwall.