Summer Budget 2015 – Landlords Reactions

I read it the same as Ros. The rate of stamp duty below £125,000 is 0%. A rate "3 percentage points higher" than 0% is 3%....

https://www.landlordtoday.co.uk/breaking-news/2015/11/anger-from-landlords-at-osbornes-move-to-impose-extra-3-buy-to-let-stamp-duty

Reply to the comment left by "Johnny SW19" at "25/11/2015 - 14:51":

correct

This nightmare is getting worse! How can GO say those who purchase with cash and no mortgage get away with changes in tax relief! Those who choose to purchase with 100% cash, pay tax on ALL of their rental returns already so pay more tax anyway. Cash purchasers do not have the advantage of the 20% relief on their mortgage payments post 2017 either. So they are paying the tax now!
GO cannot link the increase in Stamp Duty to cash buyers not being affected! They do not understand the situation at all!!
It is the poor Tenant who never gets mentioned by GO that will lose out!

GO keeps referring to First Time Buyers being pushed out by BTL investors...and making it a level field.....FTB can actually always out price an investor if they can afford it on most deals as they wish to occupy a property. An investor will always be looking for a price that fits an investment model (usually Below Market Value).
3% increase on SDLT is simply another killer blow.

Any small hope of the finer detail of Clause 24 being amended for existing debt to offset in the future is definitely not on their radar at all!

The NLA has secured a meeting with HM Treasury next week to discuss this and ensure the Government understands the impact of these policies on private landlords.

Miss Miller

Delivering his Autumn Statement and Comprehensive Spending Review (CSR) the Chancellor of the Exchequer today dealt a hammer blow to the prospects of the private rented sector.

Described by Mr Osborne as "a tax on buy-to-lets and second homes", from next April landlords will face an additional 3 per cent surcharge on top of the standard rate of Stamp Duty Land Tax.

In practice this means that landlords will face the following rates of SDLT on property acquisitions:

Current rates
New rates with surcharge

Up to £125,000
0%
3%

The next £125,000 (the portion from £125,001 to £250,000)
2%
5%

The next £675,000 (the portion from £250,001 to £925,000)
5%
8%

The next £575,000 (the portion from £925,001 to £1.5 million)
10%
13%

The remaining amount (the portion above £1.5 million)
12%
15%

Following so soon after Mr Osborne's Budget bombshell, which restricted tax relief for finance costs, this represents a sustained and targeted attack at private landlords.

Commenting on the Chancellor’s announcement on increased stamp duty land tax (SDLT) on buy to let property purchases, Richard Lambert, CEO at the National Landlords Association, said:

“The Chancellor’s political intention is crystal clear; he wants to choke off future investment in private properties to rent.

“The exemption for corporate investment makes this effectively an attack on the small private landlords who responded to the housing crisis by putting their own money into providing homes by the party that they put their faith in at the election.

“If it’s the Chancellor’s intention to completely eradicate buy to let in the UK then it’s a mystery to us why he doesn't just come out and say so”.

The NLA has secured a meeting with HM Treasury next week to discuss this and ensure the Government understands the impact of these policies on private landlords.

I think the government understand full well the impact which is why they have done it. Clearly any meeting they have will have no effecf they are out to stamp us out

Reply to the comment left by "Mark Alexander" at "24/11/2015 - 21:53":

@ Mark A, you say:
'I have many barrister friends. They all concur that Government is perfectly within its rights not to accept certain expenses to be offset against tax. An example they gave me is that a business cannot set off entertaining expenses against profit.'

*However* from: http://www.gov.uk/government/speeches/chancellor-george-osbornes-spending-review-and-autumn-statement-2015-speech:

"...cash purchases that aren’t affected by the restrictions I introduced in the Budget on mortgage interest relief"

Could this be seen as an admission by the govt that C24 is unfair, which could & I think should be questioned by barristers? (As cash & corporate 'BTLers' unaffected by it).

I am speechless as to how the market has been turned on its head by this vulture speechless

This was an attempt to stop landlords incorporating . He wants the forced sells to get the CGT. Now he wins both ways CGT or SDLT

NLA or RLA I dont think will be able to do anything to lessen the pain.

Presumably it won't apply to land purchase - so you buy a block of land and build a rental property or two.

Will it apply to condemned buildings?