Posted on 18.2.16
There’s still time for property investors to purchase a new buy-to-let property just in time to beat the rise in stamp duty on 1st April. Acting now is in your best interest – would you prefer to pay £500 in stamp duty or £5000? That is the difference if you buy a property worth £150,000 at the current rates compared to the 3% rise in tax that will come into effect after midnight on the 31st March 2016.
The tax increase is the brainchild of the government to calm down buy-to-let investment, which has been blamed for the vast increases seen post-recession in UK property prices. This week it’s been reported that the average property prices in Britain stands at £288,000; a year on year increase of 6.7%.
Instruct Gorvins Now to Beat the Hike
If you are investing in a buy-to-let property you will have to instruct Gorvins quickly in order to pay the current and more favourable rates, before the big increase comes in. Make note of the dates below:
- Buying a leasehold property – 29th February 2016
- Buying a freehold property – 7th March 2016
If you instruct a solicitor after these dates, your transaction will not be completed in time and you will more than likely find yourself substantially out of pocket. As soon as a purchase offer has been accepted, get in touch with your conveyancing solicitor and give them clear instructions so there is no delay.
What Exactly is Changing?
This table shows how the stamp duty tax will be changing for each bracket.
|Value of Property||Standard Stamp Duty||April 2016 second home/buy-to-let rate|
|Up to £125,000||0%||3%|
|£125,000 – £250,000||2%||5%|
|£250,001 – £925,000||5%||8%|
|£925,001 – £1.5m||10%||13%|
To get the ball rolling and to instruct us today, give us a call on 0161 930 5151.