Buy-to-let stamp duty painful from 2016 but maybe not in the long term.

Daniel Carey All Members

Buy-to-let stamp duty increases will be painful from next April but maybe not so bad in the long term.

The “tax grab” changes to increased stamp duty costs of buy-to-let properties announced on 25th Nov 2015 Autumn Statement by George Osborne;

  1. is going to hit landlords thinking of purchasing buy-to-let properties  and
  2. has the potential to seriously distort the property market, as landlords and second homeowners rush to beat the April deadline and then go quiet.

The Autumn Statement documents seem to point to an expectation that this won’t seriously dent the property market. Stamp duty revenue is forecast to rise from £11.2 billion this year to £17.8 billion in 2020/21.

So, whereas this will be good got the Governments cashflow in the next few years, it will be not so good for us landlords. However, if we’re in this for the long term, things may be to our advantage later… when it comes to selling up, we can offset purchase costs against any eventual capital gains tax – and that includes stamp duty.