New higher stamp duty for BTL/second homes

chucknorris

mystic_trev wrote: »

http://www.telegraph.co.uk/finance/bank-of-england/12021828/Lenders-lobby-Bank-of-England-to-leave-buy-to-let-alone.html

On top of this there's also a nasty rumour a 30% flat rate CGT could be introduced on the sale of all second homes in the next Budget.:eek:

Where did you hear that rumour about CGT Trev?

antrobus

HappyMJ wrote: »

.... To avoid SDLT on second properties the home a couple lives in would need to be transferred into one partners name and the other partner buys the BTL....therefore no tax due as each partner owns one home.

I doubt that will work if the couple concerned are married. Or in a civil partnership. It might not even work even if you ain't married. It's not like it isn't an obvious ploy to avoid the new extra tax, so I'd imagine that it is the kind of thing that will be in people's minds as they draft the proposed regulations.

CLAPTON

antrobus wrote: »

I doubt that will work if the couple concerned are married. Or in a civil partnership. It might not even work even if you ain't married. It's not like it isn't an obvious ploy to avoid the new extra tax, so I'd imagine that it is the kind of thing that will be in people's minds as they draft the proposed regulations.

maybe it would work like primary residence

a married couple can have only one PRR
but a couple can have one each

lisyloo

Mj a married couple can only have one ppr between them.
Two single people can have two homes of course but lose lots of other benefits such as transferring assets to each other tax free and using each other's tax allowances etc.

antrobus

CLAPTON wrote: »

maybe it would work like primary residence

a married couple can have only one PRR
but a couple can have one each

As I said before in another thread; I'd expect that the tax will work on the basis that you have to pay it unless you can claim an exemption. Therefore it will depend on the exact wording of the conditions for exemption. Which might include things like, not having an interest in any other residential property, or that the residential property being purchased was to be your principal private residence, or any one of a number of other things.

We won't really know until the draft bill/regulations are published.

wotsthat

I have a holiday home and had been considering buying a much larger place in anticipation of an early retirement in a few years time but an extra few £1000's in SDLT might put me off.

I also have a much larger pension pot than Mrs W.

Thinking of all the tax we'll pay is putting a lot of stress on our relationship and I fear will lead to a breakdown of our marriage.

On the plus side when we retire we'll pay much less tax on income, would have two separate PRR's (handy because we're looking at CGT on the current holiday place) and would be able to buy a nice place by the sea without extra stamp duty and reduced competition from holiday homers and BTL.

Who knows after the divorce with pension pots shared, second homes purchased and the stress of the tax diminished we might reconcile.

Mistermeaner

wotsthat wrote: »

Who knows after the divorce with pension pots shared, second homes purchased and the stress of the tax diminished we might reconcile.

She will however be on the market for a brief period.... who knows what offers she may receive

wotsthat

Mistermeaner wrote: »

She will however be on the market for a brief period.... who knows what offers she may receive

Obviously I'd get lots of attention too but I'd try and bear the burden in the name of tax efficiency.

michaels

wotsthat wrote: »

I have a holiday home and had been considering buying a much larger place in anticipation of an early retirement in a few years time but an extra few £1000's in SDLT might put me off.

I also have a much larger pension pot than Mrs W.

Thinking of all the tax we'll pay is putting a lot of stress on our relationship and I fear will lead to a breakdown of our marriage.

On the plus side when we retire we'll pay much less tax on income, would have two separate PRR's (handy because we're looking at CGT on the current holiday place) and would be able to buy a nice place by the sea without extra stamp duty and reduced competition from holiday homers and BTL.

Who knows after the divorce with pension pots shared, second homes purchased and the stress of the tax diminished we might reconcile.

(I know this will surprise a lot of people on here but) I have already asked about this on the tax board, the general consensus was that the general anti-aviodance rules about arranging one's affairs (see what I did there) only for reasons of avoiding tax would apply

Wig

Does anyone actually know what the second home stamp duty rates will be? And when it will come into effect?