What The Latest Budget Means For Your Stamp Duty Liability
Following this week’s Budget, the Chancellor has followed through on a number of planned changes to stamp duty, and tweaked other aspects of the tax.
Back in George Osbourne’s Autumn Statement, he announced that stamp duty would increase by 3% on all purchases of second homes and additional property from April 2016 onwards. This plan is indeed going ahead, but the specifics of it have changed slightly.
Experts originally believed that this increase would only apply to individual property buyers, leaving corporate investors unaffected, but the latest Budget document has now clarified this exact point, noting that the increased stamp duty will apply “equally to purchases made by individuals and corporate investors”.
This was confirmed by Jeremy Leaf, former chairman of the Royal Institution of Chartered Surveyors, who commented that though originally the stamp duty increase from the Autumn Statement “unfairly favoured large investors at the expense of smaller landlords”, now “the Chancellor has balanced it so it is not helping either group”.
In addition, after the Autumn Statement, there was widespread speculation suggesting that “significant investors”, on a corporate and individual level, buying more than 15 properties were exempt from the rises too – the Chancellor has now clarified and rejected this notion.
As one final blow to buy-to-let landlords, the latest Budget also indicates that the planned cut to capital gains tax will not change for property purchases as previously expected.
NAVIGATING CHANGES TO STAMP DUTY AND MITIGATING YOUR LIABILITY WITH FIDUCIA
Buyers of additional property to add to their portfolio need not be disappointed by the Chancellor’s latest Budget, however. Our mitigation solutions can produce savings of up to 60% with respect to stamp duty costs, with or without the increase that will coming into effect very soon.
Get in touch with our team today on 01625 599 200 for more information, or a more in-depth explanation of what the Chancellor’s latest Budget means for prospective property buyers.