INSIGHT: Buy to Let is Not A Bumper Gift from Chancellor
The Chancellor’s wintery address was full of little pre Christmas surprises, some of them nice (unless you actually worry about spending money we don’t have) and others rather naughty.
This time around cunning George unleashed his new vision of how to make life more uncomfortable for buy–to-let landlords and second home owners.
The plan is simple, but will it actually enable first time buyers get onto the housing ladder?
Let’s look at the implications first, a property costing £250,000 will now have a stamp duty hike from £2,500 to a whopping £8,800.
The basis for this change is that cash buyers were unaffected by the withdrawal of tax relief on interest.
I think this is just the start and until there is a huge increase in the supply of housing private landlords are going to an easy target for tax raids.
The message is simple, if you’re looking to invest money for the long term property might still be attractive, however do politicians see it the same way?
I suggest to anyone thinking of buying a property to look at the alternatives, Pensions, ISA’s, unwrapped investments all offer excellent opportunity’s and for the most part are taxed a lot more favourably.
This government is not so much anti saving, quite the opposite, it is however anti private landlords and like all governments very opportunist, so think very carefully before telling your mates in the pub this Christmas about the “goldmine” you’ve just bought.
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Also in this issue of Insight
- Buy to Let is Not A Bumper Gift from Chancellor
- Part-time working hours - holiday pay calculations
- So called 'penalty' clauses in commercial contracts
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
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