Written by Daniel Latto in Property Coaching

  • Home
  • /
  • Blog
  • /
  • Buy let stamp duty could make investment unviable for new entrants in UK
December 31, 2015

The extra 3% stamp duty tax being levied on buy to let and second home buyers in April 2016 means that it may no longer be financially viable for new entrants to the lower end of the private landlord market, it is claimed.

And the new tax band will have a disproportionate impact on pensioners looking to generate revenue in retirement, according to Chestertons, one of London’s largest estate agents.

The announcement of the additional levy on second homes and buy to let purchases came as a surprise announcement in the Chancellor’s Autumn Statement, and initially caused some confusion across the industry as pundits disagreed on how the additional 3% would be applied.

Chestertons has now calculated that the extra duty will hit the lower end of the market more heavily in terms of a percentage increase than it will the higher end. A buy to let property acquired for £150,000 attracts stamp duty of £500, but under the new regime it rises to £5,000, a tenfold increase.

By comparison, an investor buying a property for £1 million currently pays £43,750 in stamp duty, while the new rate will be £73,750, less than double the original duty, although of course a larger amount in cash terms.

You can read the entire article over at he Property Wire website.

Chat About Your Next Project With Us

Latest Posts You May Enjoy

June 24, 2024

June 20, 2024

June 14, 2024

June 12, 2024

June 10, 2024

June 7, 2024

June 7, 2024

June 5, 2024

May 29, 2024

May 17, 2024

May 15, 2024

May 13, 2024

Full Service

Digital Marketing Agency

Get more traffic. Acquire more customers. Sell more stuff.

Grow Your Brand