Thu 03 Nov 2016 View all news articles
New tax changes have not curbed buy to let spending, with a quarter of properties purchased over the summer as a buy to let investment or second home.
New statistics from HMRC found that despite stamp duty costs seeing a hefty increase for second home buyers and investors in April, of the 235,000 property purchases in the third quarter, 56,100 included the additional stamp duty surcharge.
HMRC profited heavily from the changes, with £440 million gained for the taxman in the three-month period of July to September, having made £670 million in total from the move since April.
The stamp duty surcharge on buy to let properties and second homes was introduced by Chancellor George Osborne in his Autumn Statement in November 2015. In the three months of April, May and June, just 30,300 of 207,900 purchases were for second properties, following the rush to invest before the changes came into practice. However, the growing figures suggest that investors have not been deterred.
The figures from HMRC figures also showed that the majority of second home sales cost less than £250,000, although a small portion (6,000) cost over 500,000. For the latter group, stamp duty would now amount to up to £30,000 following the April changes.
Just under 50,000 properties sold below £40,000 and stamp duty was not applicable. The number of these that were sold to second buyers was not disclosed by the HMRC.
Source: Residential Landlord
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