On November 25th the Government announced its latest measure to choke (and get more tax out of) the massive buy to let market of the last few years. This is an extra 3% stamp duty payable on nearly all buy to let (second home) investors when they purchase. On a £500,000 flat that would result in a £15,000 extra cost on top of the existing stamp duty payable for normal transactions. This is in addition to the recently announced changes for top rate tax payers who will get reduced interest relief for tax on buy to let mortgage interest.
Clearly, the government wants to take some heat out of the Buy to Let market, as well as get extra revenue; some buy to let buyers will pay this charge going forward. Although, for many potential buy to let investors it will now either be a rush to complete before the changes take effect in April 2016, or after that look for alternative routes of entry for investment into the property market which are not taxed so punitively.
Equity Development opportunities as offered by Cogress may be one of the potential beneficiaries of this change, as investors move their money elsewhere, if they wish to invest in the property market.
Please note: tax laws are subject to change and affect individuals differently depending on circumstance. Seek independent advice if necessary.
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