New buy to let stamp duty! Stamp duty for buy to let investors will be 3% higher from April 2016!

Buy to let investors will pay thousands of pounds extra in tax when they buy a property following the announcement by the Chancellor of the “special” stamp duty tax rates applying from April 2016.

The increase in stamp duty for buy to let investors could lead to new housing developments stalling and rents increasing for tenants of private rented accommodation.

For example, the tax bill on a buy to let property costing £250,000 will increase from £2,500 to £10,000!

Higher rates of Stamp Duty Land Tax (SDLT) on purchases of additional residential properties

The same increase in stamp duty will apply to buying second properties, such as holiday homes, in which the owners do not intend to live their full time.

It is always important before you take any action that you obtain professional advice. If you have any questions in respect of the above, then please do not hesitate to contact our tax experts by sending an email to kevin@kwaccounting.com