Doctors with buy-to-let properties or second homes will be hardest hit by policy changes presented in the Chancellor’s Autumn Statement in November.
A 3 per cent surcharge on stamp duty will apply to all bands from April 2016 to some buy-to-let properties, expected to raise a total of £1bn for the Treasury by 2021. Properties with a purchase price of £40,000 to £125,000 will now be subject to a 3 per cent stamp duty tax where none applied before, those from £125,000 to £250,000 will now attract a 5 per cent stamp duty rate, while 8 per cent will apply to those purchased between £250,000 and £925,000.
As an example, landlords purchasing a property worth £250,000 would see the applicable stamp duty rise from £2,500 to £8,800.
George Osborne also announced that second home owners will be targeted by a change to Capital Gains Tax (CGT) rules from 2019. Any CGT due from selling a property must be paid within 30 days of completion rather than at the end of the tax year.
This comes on top of last year’s stamp duty reforms which already affects higher-end properties as well as the news announced in the summer Budget that landlords will receive only the basic rate of tax relief on their mortgage payments from 2017.
Is buy-to-let still an attractive investment for your particular situation? Now is the time to thoroughly review all assets to ensure they are still offering the best opportunities for growth and income. For more information, please call one of our advisers on 020 7636 7006.
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