Stamp Duty Increase for Buy-to-Let Landlords

Buy-to-let landlords received another shock in the Chancellor’s recent Autumn statement.

From 1st April 2016, HMRC are introducing a 3% Stamp Duty surcharge on the purchase of ‘additional’ residential properties. This will include both buy-to let properties and second homes, but will not apply to caravans, mobile homes or houseboats.

The surcharge will increase the Stamp Duty payable on a property costing £275,000 by £8,250 (from £3,750 to £12,000).

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Changes to The Non-Resident Landlord Scheme

HMRC have recently changed the process for dealing with landlords who are resident overseas, but own and let property in the UK.

Letting agents within the UK must release details of income received by non-resident landlords to HMRC, and they must also deduct basic rate tax from the receipts, before paying it over to the landlord.

As well as this, the agent (or tenant) must submit an annual return to both HMRC and the landlord by 5th July each year, despite the fact that HMRC will no longer be sending out these annual return forms!

The form can be downloaded here, if needed.