Budget 2016 stamp duty changes, and what they mean for West London property investors

Chancellor George Osborne announced a number of changes to the stamp duty in this year’s budget. Here’s a short run-down of the key changes in store from April 2016:

There will be a new stamp duty surcharge of 3% on the purchase of second homes and buy-to-let property, effective from April 1st this year. All purchasers of buy-to-let properties will pay this additional tax, including larger investors. The funds generated, according to the Chancellor, will supplement local housing schemes.

Also announced was a reform in commercial stamp duty rates, aiming to benefit up to 90% of smaller firms and investors, to be put into effect immediately. Purchasers of commercial property will now pay 0% on the first £150,000 of their investment, 2% on the next £100,000 and 5% on anything rising above £250,000.

Capital Gains Tax is to be cut by 8% across all tax brackets, starting from April 6th this year. However, this is unlikely to provide any relief for landlords, as gains on residential property will remain taxed at the current rate.

This has been a fairly uneventful budget for the property industry, with no big surprises and no devastating bombshells. These changes are unlikely to substantially disrupt buy-to-let proceedings in and around W6 and W12, and may even prove to be of benefit for those with investment properties outside of the West London area.

Horton & Garton are not only able to assist those looking for buy-to-let property, but we also offer a bespoke lettings management service for our landlords, which includes advice on all additional costs and charges involved in getting started with buy-to-let. For more information and to get in touch, visit our Landlords page.