The Chancellor’s 2015 Autumn Statement generated headlines for the reversal of tax credit cuts, but there was very little which affected small business. This is just as well given the treatment dished out in the March Budget and the Summer Budget.
However, there were a couple of announcements which affect Buy to Let landlords.
Stamp Duty Land Tax
The rate of Stamp Duty Land Tax (SDLT) will be increased by 3% for the purchasers of second homes and buy to let properties. This is effective from 1 April 2016. So, for example, properties costing up to £125,000 have no SDLT, but under the changes, this will increase to 3%. For a property costing £125,000, this will add on a further £3,750.
Payment of Capital Gains Tax
Capital Gains Tax (CGT) will become payable within 30 days of selling a residential property by 2019. Under current legislation, CGT is collected under Self Assessment and individuals have up to 21 months after the sale of a property to pay CGT (this depends upon when the property is sold).
However, this will not affect gains on properties which are not liable to CGT due to Principal Private Residence Relief, which everyone receives on the house they live in.
Further details are available here.