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A window of opportunity with a sting in the tail!

A number of the property industry ‘gurus’ and ARLA have called yesterday’s Budget Statement as the ‘nail in the coffin’ for the buy-to-let market with shares in publicly listed agents falling on the news.

The Chancellor’s changes mean that each Stamp Duty band will go up by 3% for buy-to-let properties and second home purchases from next April 2016.

How it will be calculated:

  • Property purchase of £40,000 to £125,000 – Stamp Duty will be levied at 3% (currently 0%)
  • Up to £250,000 – 5% (currently 2%)
  • Up to £925,000 – 8% (currently 5%)
  • Up to £1.5m – 13% (currently 10%)
  • Over £1.5m – 15% (currently 12%)

Other changes will see purchasers having to settle their Stamp Duty bills from HMRC, reduced from 30 days to just 14 as from 2019. Also, anyone selling a buy-to-let or second home will have to settle their Capital Gains Tax (CGT) within 30 days, rather than up to 21 months after selling, depending on the sale date.

These changes, whilst providing the exchequer with nearly a billion pounds in tax revenue will ultimately be handed on to tenants, who are finding it increasingly difficult to meet rising rents in the private sector.

The Opportunity!

There is NOW a good four months window to look at your finances / investment strategy to acquire a buy-to-let before the STING!

Here at GSC Grays with specialist lettings advisors (ARLA trained), we are uniquely placed to assist purchasers.

[team-member name=”Tim Leonard”]

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