what do buy to let tax changes mean to you
Back in the 2015 Autumn Statement, there was talk of making some big changes in the buy-to-let market, by the chancellor of the exchequer. Since then, further details and more in-depth rules have been released which could have a big impact on anyone with a portfolio of properties; whether that just be a second home or an entire town’s worth. It’s important that any buy-to-let landlord is aware of what is due to change over the coming year, so here’s a breakdown of everything you need to know.
Increased Stamp Duty
Perhaps one of the biggest blows for BTL landlords, or anyone planning on buying a second home, will be the increased Stamp Duty Land Tax. By April 1st 2016 the amount you pay in stamp duty will rise to 3% above where the rates currently stand. That means you would pay 5% SDLT on any amount between £125,001 and £250,0000 – as opposed to 2%, and so on. This also means that those buying second properties will not benefit from the 0% stamp duty rate on the first £125,000 either, as this rises to 3%. It is important that you factor the increased costs into your budget if you’re planning on getting a buy-to-let mortgage in the future.