There have been a few tax changes announced in recent months that will impact on buy to let investors.
Over the coming weeks we will provide a round-up of the main items, starting with the changes to stamp duty land tax.
With effect from 1 April 2016, there will be an increase in the charge to SDLT of 3% where individuals own two or more residential properties. Properties worth less than £40,000 will not count.
Under current proposals if there is a delay when selling your main home such that you inadvertently own two houses, additional SDLT will still be due. However, a refund can be claimed if the property is sold within 18 months.
The change is effective from 1 April 2016, so there is time to consider accelerating any planned residential property purchases so that the lower rate applies.
Remember that the increase applies only to individuals, not companies, and only to residential property.
For more details contact Lesley Sutton on 01484 550037 or email email@example.com.