TO INVEST OR NOT TO INVEST
The government have hit buy to let landlords over the last few years with tax hikes but is this new stamp duty ruling make this a good time to rethink an investment property?
Many Landlords have left the buy to let market over the last few years, but this new stamp duty ruling that came into play yesterday means:
Analysis of the temporary tax rules by investment broker AJ Bell showed that for a purchase of a home worth £300,000, that is not a main residence which includes second homes and investment purchases, the stamp duty bill would be £9,000 instead of £14,000. This is because the three per cent surcharge on second homes is still applicable. But normal stamp duty rates do not apply.
For a purchase of a £500,000 property, the £30,000 tax bill would be cut in half.
Food for thought.
https://www.mortgagesolutions.co.uk/news/2020/07/08/landlords-have-huge-opportunity-to-expand-portfolios-as-stamp-duty-bills-halved-by-chancellor/