George Osbourne has said this new surcharge will raise £1bn extra for the treasure by 2021.
However some landlords have said this will choke off investments in rental properties.
The stamp duty charge will lift each band up by 3%. Properties worth between £125,000 to £250,000 currently have a stamp duty of 2%. However for landlords, this will mean an increase to 5%.
Those who own more than 15 commercial properties are expected to be exempt from the new charges.
Stamp Duty Rates (on Purchase)
Buy to let purchases below £125,000 previously meant no stamp duty was paid by the landlord. However the new changes will see these rates rise up to 3%.
But thats not all for landlords. April 2019 will see changes to Capital Gains Tax for landlords. Landlords will be expected to pay any CGT due within 30 days of selling a property rather than waiting till the end of the tax year.
The Chancellor, in his summer budget, has already mentioned landlords would only receive the basic relief of tax relief – 20% – on mortgage payments, a change which will they are hoping to phase in from 2017.
So why wait to invest? Taking all the upcoming changes and legislations into consideration, it seems the best to time to buy that second home or buy to let is now, preferably before the changes are implemented in April.
Buying a second home or a buy to let is a costly decision but with the right expertise and advice, it could be the start to your financial freedom.
Silks Investments aim to help our landlords and investors to achieve financial freedom by helping them build they own property portfolio. For further details, contact us for a free consultation.