Buying additional properties
Make sure you have done your sums before you proceed with that additional property purchase
A nasty shock awaits those who have not fully calculated the full implications of the latest Stamp Duty Land Tax additional rate warns Jim Bryant. Do not forget this additional rate will apply even if you have a share in another property so if you are sharing the equity with bank of Mum and Dad who already own another property, a sibling or a husband or wife you will be caught by this.
Stamp Duty charge
Purchase price single dwelling additional dwelling
£300,000 £5000 £14,000
£600,000 £20,000 £38,000
The proposal to reduce the filing and payment deadline for Stamp Duty Land Tax from 30 days after a transaction to 14 days has now been delayed until after April 2018
Buy To Let
From April 2017 Tax relief for interest paid will be restricted to basic rate rather than tax payer’s marginal Income Tax rate, potentially this will bring substantial disadvantage for landlords who have borrowed to buy their properties ( as the majority do).
2017/18- 25% of interest will be relieved at basic rate, the remaining 75% will be deducted from income.
By 2020/21- all the interest will be restricted to basic rate relief only.