You are here: Home - Mortgages - Buy To Let - News -

Limited companies not exempt from 3% Stamp Duty surcharge

Written by:
Investors buying residential property inside a limited company tax wrapper will still have to pay the 3% Stamp Duty Land Tax (SDLT) surcharge, it was confirmed today.

In a bid to sidestep the incoming taper relief on mortgage interest rate payments, beginning in 2017, thousands of landlords have been placing properties in Special Purpose Vehicles since the Summer Budget in July last year.

Today, the government confirmed only properties worth less than £40,000 along with houseboats and caravans will be exempt the 3% Stamp Duty surcharge. In last year’s Autumn Statement, George Osborne said buy-to-let investors with 15 or more properties in a limited company structure would not be subject to a 3% increase in SDLT. But he backtracked on this in his Budget statement today.

He said: “Companies purchasing residential property will be subject to the higher rates (of stamp duty), including the first purchase of a residential property.”

“Properties purchased for under £40,000, caravans, mobile homes and houseboats will be excluded from the higher rates. Furthermore, small shares in recently inherited properties will not be considered when determining if the higher rates apply.”

The tax surcharge affects anyone buying a residential property in England, Wales and Northern Ireland who on completion owns two or more properties and is not replacing a main residence.

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
New tax for sugary drinks but fuel and alcohol duty frozen

Fuel duty for petrol and diesel will be frozen for the sixth year in a row, saving the average driver...