money in stacks for budget 2016

Posted by Admin - 21/03/2016

 

Budget 2016

On Wednesday last week during the Budget 2016, George Osborne unveiled a higher rate of capital gains tax that would apply to gains made on residential property from 6 April 2016.

Landlords were excluded form the severe drop in capital gains and the higher rate only applies to residential property and not commercial which is a blow for buy to let investors as Landlords.

This closely follows the announcement of higher rate stamp duty which will be applied to buy to let or second property purchases from 1 April 2016 and the removal of deducting mortgage interest costs before calculating tax liability which is being phased in gradually in April 2017.

Landlords are being targeted by the government which could force them to increase rents or sell their properties.

Investment buyers have rushed to try and complete their property purchases by the end of March 2016 to avoid the 3% stamp duty surcharge coming in for second homes at the beginning of April.