New 3% Stamp Duty tax

seaspray10

Bless you, you are very angry aren't you?


I don't feel I'm being foolish, I invested my savings in BTL properties, rather than cars and holidays, as I didn't want to rely only on government state pension when I retire.


I have 2 BTL's which I own a small percentage of, the lender owns the lions share.


Why get involved in a thread meant to inform others in my position, if it upsets you so much?

AdrianC

seaspray10 wrote: »

I have 2 BTL's which I own a small percentage of, the lender owns the lions share.

No, you own 100% of them both. You just have substantial borrowings secured against them, so your business activities are heavily geared.

alchemist.1

To be fair the increase in stamp duty was designed for people in your scenario. I'm unsure why you thought any different.

Highly leveraged semi professional BTL landlords were the main target of the stamp duty increase and that was always the intention.

marksoton

seaspray10 wrote: »

Bless you, you are very angry aren't you?
Nope, why would i be...?

I don't feel I'm being foolish, I invested my savings in BTL properties, rather than cars and holidays, as I didn't want to rely only on government state pension when I retire.

Fair enough, but don't be surprised when the wheels fall off...


I have 2 BTL's which I own a small percentage of, the lender owns the lions share.

Oh dear...

Why get involved in a thread meant to inform others in my position, if it upsets you so much?

However do you think it upsets me?

I really don't care. You should...

dimbo61

The new 3% stamp duty kicks in from April so buy the property NOW and avoid the Tax.
You must know after 2 years if you like the place !

seaspray10

alchemist.1 wrote: »

To be fair the increase in stamp duty was designed for people in your scenario. I'm unsure why you thought any different.

Highly leveraged semi professional BTL landlords were the main target of the stamp duty increase and that was always the intention.

This will effect all BTL landlords unless you're a PLC or Ltd company, as the tax also applies to cash purchases.
BUT the reason I posted, wasn't to complain, it was to let other BTL landlords who didn't own their own residential property know that they would be subject to this tax, if they purchased a residential property after 5th April 2016.

seaspray10

dimbo61 wrote: »

The new 3% stamp duty kicks in from April so buy the property NOW and avoid the Tax.
You must know after 2 years if you like the place !

That's exactly what we're in the process of doing but as we only found out about this last week, I thought it was worth letting other people know.

booksurr

seaspray10 wrote: »

That's exactly what we're in the process of doing but as we only found out about this last week, I thought it was worth letting other people know.

fair enough, however others are ahead of you as they read about it when it was announced last November seeing as it was headline news in the Govt's November financial statement

here is the thread (>5k views)
https://forums.moneysavingexpert.com/discussion/5367405

AdrianC

seaspray10 wrote: »

but as we only found out about this last week

It was announced in November.

ognum

seaspray10 wrote: »

This will effect all BTL landlords unless you're a PLC or Ltd company, as the tax also applies to cash purchases.
BUT the reason I posted, wasn't to complain, it was to let other BTL landlords who didn't own their own residential property know that they would be subject to this tax, if they purchased a residential property after 5th April 2016.

Thank you for this information, there has been a drip drip of information on this but clarification of each point is very useful.

It appears the tax will be paid on anyone who increases the number of houses they own and on BTL properties.

Thanks again