hazellend
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Post by hazellend on Mar 16, 2016 21:23:54 GMT
Does anybody know if HMOs and mixed commericial residential properties will be classed as commercial and avoid the new stamp duty additional 3%?
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j
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Penguins are very misunderstood!
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Post by j on Mar 17, 2016 7:53:04 GMT
Does anybody know if HMOs and mixed commericial residential properties will be classed as commercial and avoid the new stamp duty additional 3%? Borrowed this from another site: The Budget has clarified that the 3% additional stamp duty will apply to second (or more) residential properties that are bought by individuals and companies alike. Secondly, companies that are used to purchase buy-to-let property look able to fully offset their mortgage interest against income and achieve full tax relief, unlike individuals buying buy-to-let property themselves. There are many and varied other company tax reliefs available, such as a 17% tax on rental profits and capital gains (down from 20% by 2020). The second point does not apply to pm as they do not gear properties but buy outright. Maybe propertymoose can give their much better educated & firm insight on the matter. Last time they produced an excellent article that showed they would be exempt as any co owning more than 15 properties would be exempt - is that still the case?
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Post by highlandtiger on Mar 17, 2016 8:40:03 GMT
Last time they produced an excellent article that showed they would be exempt as any co owning more than 15 properties would be exempt - is that still the case? No they won't, it looks like the budget closed that glimmer of hope. The changes will apply across the board no matter how many properties you have. Just waiting for PM and other (PP etc), to confirm how they read the budget changes. Errrrr, just found this on the PM site...... How will the 3% surcharge on (Stamp Duty Land Tax) SDLT affect my Property Moose Investments?
November 26, 2015 14:40
Shares bought by our members are in UK Limited Companies that hold just one property asset. This means that acquisitions of residential properties by Property Moose members after the 1st of April 2016 will remain exempt from the 3% surcharge on SDLT. As such there will be no effect on your property investments with us.Now as I understand it, the SDLT is only applicable on second homes, (and third, fourth etc). But as the "company" will not be living in this home, I'm not sure that PM have fully understood these changes, but that's my reading of it, and I'm certainly no expert.
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adrianc
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Post by adrianc on Mar 17, 2016 8:59:07 GMT
Does anybody know if HMOs and mixed commericial residential properties will be classed as commercial and avoid the new stamp duty additional 3%? THC recently sent out a loan notice email which included something along the lines of "probably your last chance before the 3% SDLT rise".
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ben
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Post by ben on Mar 17, 2016 10:14:03 GMT
I think we will be hit by it and it could make quite a dent in returns, as the orginal plan was to buy and sell after 2/3 years with paying 3% stamp duty will significantly reduce return yield.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 17, 2016 12:00:18 GMT
There's absolutely no mention of the 3% BTL higher rate stamp duty in relation to commerical properties in yesterday's budget. The changes are from a 'slab' (relevant rate to full price charged on full value) to 'slice' (relevant rate charged on each part of transaction as per rate tiers) system (Red book p50) Are PM properties commercial? (They define them as commercial but not sure thats right in this context) The changes are those from the autumn statement on residential properties and ISTM that it will apply www.gov.uk/government/uploads/system/uploads/attachment_data/file/508272/GuidanceNote_Final.pdfCompanies and others non-individuals
5.1
The higher rates will apply to the purchase of major interests in one or more dwellings by a company, if Conditions A and B are met in respect of at least one of the dwellings
:Condition A-the dwelling purchased is worth £40,000 or more;
Condition B-the dwelling is not subject to lease which has more than 21 years to run on the date of purchase;
5.2
If none of the interests in dwellings meet both Conditions A and B then the higher rates will not apply to the purchase.
This would seem to contradict the statement on PM site. Sure someone with a better knowledge can correct this |
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Post by propertymoose on Mar 18, 2016 11:52:45 GMT
Hi all
A good debate going already on the SDLT changes in the budget. Hopefully, I can provide our view to assist with any assessments of the changes.
The government has done a u-turn on their suggested exemption for professional property investors (i.e. those with large portfolios) and the additional 3% SDLT will apply across the board to all those with additional/investment properties. This includes SPVs save if the property being acquired is under £40,000.
This is an unfortunate development and one that seems an odd choice by the government. In reality, the additional costs will be priced into any acquisitions and rentals and we would always look to ensure that all purchases are at enough discount to ensure that the numbers stack up and value exists in the deal.
In terms of the article that was flagged above, this was written before the release of the final statement so please ignore the contents. The article has now been removed and will be updated in due course.
Hope that helps.
Andrew
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 18, 2016 12:03:59 GMT
I look forward to the opportunity to invest in a range of well appointed understairs cupboards & palatial sheds available for a very reasonable £39,999.99 inclusive of costs  |
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