New higher stamp duty for BTL/second homes

CLAPTON

Wig wrote: »

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

3% and april 2016

Thrugelmir

1st April 2016.

Up to £125,000 3% (on full purchase price above £40k to £125k)
£125,000.01 - £250,000 5%
£250,000.01 - £925,000 8%
£925,000.01 - £1,500,000 13%
£1,500,000.01 15%

New bandings also come into force next year that were announced in 2014.

lisyloo

I looked int it too Michaels and even consulted some professionals but wotsit refused to accept it.

Generali

Seriously? 15% tax on a house purchase. That's crazy.

chucknorris

Generali wrote: »

Seriously? 15% tax on a house purchase. That's crazy.

I agree, but don't forget the 15% only applies over £1.5m, everything below that is taxed at the appropriate band rate. So although it is bad (terrible) it isn't actually as bad as it sounds (as it is the pantomime season ........ oh yes it is).

adr0ck

Generali wrote: »

Seriously? 15% tax on a house purchase. That's crazy.

Seriously? 15% tax on a mansion purchase. That's crazy

fixed it for you

chucknorris

adr0ck wrote: »

Seriously? 15% tax on a mansion purchase. That's crazy

fixed it for you

£1.5m doesn't buy that much in London or the nicer parts of the S.E., a nice property, yes, but you are living in cloud cuckoo land if you think it would actually buy a mansion :rotfl:

Generali

chucknorris wrote: »

I agree, but don't forget the 15% only applies over £1.5m, everything below that is taxed at the appropriate band rate. So although it is bad (terrible) it isn't actually as bad as it sounds (as it is the pantomime season ........ oh yes it is).

I know we've discussed your BTL empirelet a few times. In light of what is going on I'd consider accelerating selling up if I were you.

As Mr Zimmerman said, "You don't need a weatherman to know which way the wind blows".

BTL basically came in with the AST and it's going out by Government diktat too. I always maintained that political risk was the big problem with BTL.

chucknorris

Generali wrote: »

I know we've discussed your BTL empirelet a few times. In light of what is going on I'd consider accelerating selling up if I were you.

As Mr Zimmerman said, "You don't need a weatherman to know which way the wind blows".

BTL basically came in with the AST and it's going out by Government diktat too. I always maintained that political risk was the big problem with BTL.

I can't argue, with your logic, but the most important thing is that (as you said) I was already accepting that it was getting near the time to get out. It was always my plan to sell at about 60 (I'm 58 in Jan),and it was only a few years ago that I thought about extending that, but now it looks like time to revert to plan A. I think teh real danger is what a labour Gov might do with rents, thankfully that isn't going to happen soon, but I'm aware of the potential danger.

adr0ck

chucknorris wrote: »

£1.5m doesn't buy that much in London or the nicer parts of the S.E., a nice property, yes, but you are living in cloud cuckoo land if you think it would actually buy a mansion :rotfl:

so your saying that the 15% only applies to London and the SE?

Most other places and your buying a mansion

England & Wales does not mean London and the SE

England and Wales is much bigger than that - have you never noticed?