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CHANGES TO PROPERTY LAND TAX - FROM 1ST APRIL 2016

The demand for buy-to-let properties is growing rapidly as investors look to beat the tax rise which will add thousands of pounds onto the cost of buying a second home.

 

As of 1st April 2016 anyone who purchases an additional property, such as a buy-to let, will be taxed at 3% of the full purchase price.

 

This additional tax will be added to the existing Land and Buildings Transaction Tax (LBTT) already being paid on a property.

 

The exemption for properties purchased under £40,000 will remain in place and not be subject to the new tax regime.

 

Representative Examples:-

 

Purchase Price

Current Tax Payable

Tax Payable from 1st April 2016 if purchased as 2nd Home or Buy-to-Let

 

 

£30,000.00

 

 

NIL

 

NIL

 

£40,000.00

 

 

NIL

 

£1,200.00

 

£100,000.00

 

 

NIL

 

£3,000.00

 

£145,000.00

 

 

NIL

 

£4,350.00

 

£200,000.00

 

 

£1,100.00

 

£7,100.00

 

£255,000.00

 

 

£2,350.00

 

£10,000.00

 

Fiona Ford, Director of Fords Daly Legal, said “We have a number of properties currently on the market which would suit an investor and make an ideal buy-to-let property.”

 

“The new tax will not only cover investors looking to get into the buy-to-let market but will also cover any additional properties being purchased by someone who already has a property in their name. This will include holiday homes and flats purchased on behalf of children.”

 

“We would encourage any person looking to purchase an additional property to act fast and do this before the new tax regime comes into place on 1st April 2016.”

 

If you would like to speak to one of our property experts about the implications of the new tax regime on you or are interested in any of our properties currently being marketed please contact our office by calling 01592 640630 or e-mailinginfo@fordsdalylegal.co.uk