Property Investors: Chancellor announces further tax changes.
In his Autumn Statement George Osborne has announced two significant further tax changes for residential property investors:
- Firstly, Stamp Duty Land Tax rates will be increased by3% on purchases of residential properties, such as buy to let properties and second homes. This measure takes effect from 1 April 2016 and will add £9,000 to the cost of a £300,000 property. The time limit for paying SDLT on all property purchase will be reduced from 30 days to 14 days with effect from 2017.
- Secondly, from April 2019 a payment on account of any Capital Gains Tax due on the disposal of residential property will be required within 30 days of the completion of the disposal. Properties eligible for Private Residence Relief will not be affected. Draft legislation will be published next year, but this measure appears to bring the time limit for payment of tax on all residential property sales into line with rules recently introduced for non-resident property owners.