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  • Tax

    Stamp duty advice on multiple properties

    Hi all 
    I desperately want to buy a second property either to rent or do up and sell.

    I was a first time buyer 5 years back and bought my house for 235k

    Now I think I could just about afford another place but I’m a real novice and after advice

    If I bought a second place is there any way to avoid the huge stamp duty costs? I looked at a property valued at 350k and the SD came up 18k! 

    Do all people that buy additional properties pay these huge costs or are there ways round it? Maybe I am naive? But surely these high costs must stop a lot of people yet I see so many doing it? 

    Thank you 

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    All 2nd property purchases (BTL) will incur stamp duty, the only variation to that rule is buying a 'holiday let' type property as I understand it....
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    The additional 3% applies to any second dwelling over £40k. The use such as a holiday let is irrelevant. Some things are not considered dwellings such as student halls of residences. I suspect you will be subject to the additional 3%.
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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022

    Yes everyone has to pay it which is why so many investors have cut back on their purchases (not mention s24).  I'm not sure where you are based but 350k is a lot of money in Northamptonshire, what sort of rent and yield are you getting at that price? Of course when you come to sell it any purchase costs including stamp duty are set against your capital gains tax so make sure you keep a record of legal fees, survey costs etc. Sadly the incentives for property development are much reduced now, I'm not sure I could afford to start nowadays. All in the governments grand plan to annihilate landlords I'm afraid. Good luck!
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