Home > Legal Articles > Tax changes for landlords – what do they really mean?

Tax changes for landlords – what do they really mean?

Posted on Wednesday, 16th March 2016 by

IMPORTANT: Buy-to-let landlords will be subject to an additional 3 per cent stamp duty charge for property purchases on or after 1st April 2016.  In addition, there is a withdrawal of other tax reliefs being phased in, in particular, the Wear & Tear Allowance for furnished properties, and a reduction in tax relief available on mortgage interest.

There has been Government consultation on the detail of the SDLT charge, which closed on 1st February – there may yet be some late changes to how the rules will apply, but the summary below is based on the position as at 16th February 2016.

The SDLT Rates

Who will be affected?

Anyone owning a second property that isn’t their main residence and buying another, or replacing the one they don’t live in, is expected to be within the additional charge.

  • Those owning a portfolio of buy-to-let properties,
  • Those buying additional property in their own name, such as parents buying property for their children to live in at university.

The higher rates will only apply to additional properties purchased in England, Wales and Northern Ireland on or after 1stApril 2016.

property libale for higher rates check list

 

What are the new rates? 

The proposed higher rates will be 3 percentage points above the current residential rates, including the 0% band.

They will be charged on the portion of the value of the property that falls into each band.

SDLT table

If you would like to talk to a specialist about this topic further please do not hesitate to contact our:

Tax Specialists in Stoney Stanton

The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer.  If you are interested in obtaining advice, please contact one of our solicitors who will be happy and able to advise you on your own particular circumstances.

Talk to our legal team

The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.

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Leanne Hathaway - Tax and Trusts
Leanne Hathaway - Tax and Trusts
leanne.h@ehlsolicitors.co.uk 01455 274 170
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