The recent changes in Stamp Duty Land Tax have the potential to affect the buy to let market with a further 3% duty now applicable to purchases of second homes.
As expected, we did experience a rush on getting sales exchanged prior to the 1st April deadline but despite the increase in tax it is now anticipated that for occasional investors in property, the additional tax will not significantly affect the market.
There are many reasons that property remains an appealing investment, including continuing poor return from the stock market and from bank interest. The possible growth in the property market, coupled with the rental return in an investment which can be perceived as “real” will continue to be a particular draw.
In respect of non-residential property, although Stamp Duty has risen with a top line rate of 5% for any property over £250,000, a benefit is now being given in Capital Gains Tax with a reduced rate to 20%.