Autumn Statement 2015 

Negatives:

* 3% additional stamp duty levy applies across all bands with effect from April 2016 on 2nd homes and buy to let properties

* Starting from April 2019, investors will have to pay any Capital Gains Tax due within 30 days of selling a property, rather than waiting until the end of the tax year as is the current situation

Positives:

* From the additional tax raised, the government pledged an extra 400,000 homes by 2020 to solve the spiralling housing crisis

* Help to Buy: The new scheme will provide buyers who have a 5% deposit with an interest-free loan of up to 40% of the value of the home, up from 20% before

* London will get an additional £11bn to spend on infrastructure including rail, tube, roads and cycle routes

Initial thoughts:

* We are still waiting for HMRC’s communication regarding the actual implementation of the additional stamp duty.  However, if the usual tax principles are followed, and if last year’s reforms are anything to go by, the change will only affect those who exchange after April 2016.  Ie for any investors who have exchanged on their properties before April 2016 with completion dates after April 2016, they won’t be affected by this change

* For those who are looking to invest further in the property market, there may be a rush to purchase 2nd homes and buy to let properties with exchange prior to the April 2016 deadline.

* A general cooling on property investments after April 2016 but a big boost for the end-user market at the lower range of the price point up to around £600,000.

* Developers will be more focused to building affordable housing

* Developers may offer discounts to offset the additional stamp duty to make it attractive for investors

Courtesy of Helena Lim-Poole, HLP International Properties Ltd.

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