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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Increase in Rent-a-Room Relief

If you rent out a room in your only or main home, you can currently claim up to £4,250 in rent-a-room relief.

This means that you can receive up to £4,250 per year tax free income from letting out furnished accommodation in your home.

However, from 6th April 2016, this relief is set to increase by over 75% to £7,500 per year, giving an opportunity for householders with spare rooms to generate additional tax free income.

See here for further information regarding the Rent a Room scheme.