The UK chancellor announced last week that homebuyers (including buy-to-let landlords) won’t pay stamp duty on the first £500,000 of a property’s purchase price in England and Northern Ireland until 31st March 2021. These rates apply whether you are buying your first home or have owned property before.
Following tax changes made over the last few years and the subsequent reduction of investors in the property market, this announcement will come as great news for landlords looking to expand their portfolios.
This could also create the opportunity for many landlords to move properties from their own name into limited companies, which stamp duty implications may have previously made difficult.
Those buying property in Scotland and Wales were not included in the announcement as the taxes when buying property work slightly differently there.
Does this rule apply to me if I’ve exchanged but not completed?
You are required to pay stamp duty once you have completed on a property purchase. Therefore, if you exchanged before 8th July 2020 but have not yet completed, you will still benefit from the increased limits.
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If you are considering buying an additional property or you want to review your insurance needs on your current homes, please don’t hesitate to contact us on 01206 913 394 or firstname.lastname@example.org.