Large Scale Purchases of Additional Properties
The planned Stamp Duty rise on purchases of buy-to-lets and second homes, from 1st April 2016, is to be extended to include those who buy more than 15 properties. Under the original plans, large-scale purchases of property would have be exempt from the additional tax over concerns it could curb the much-needed investment in housing projects.
Commercial Stamp Duty rates came into force on 17th March, 2016
• 0% for the portion of the transaction value up to £150,000;
• 2% between £150,001 and £250,000
• 5% above £250,000.
Buyers of commercial property worth up to £1.05m will pay less in stamp duty.
For example, if you bought a pub for £270,000 prior to the budget you would have paid over £8,000 in Stamp Duty. From 17 March 2016, the SDLT will be £3,000.
Stamp Duty rates for leasehold rent transactions will also change, with a new 2% stamp duty rate on leases with a net present value over £5m.
New ISA
The Chancellor announced a new ISA for people under 40. The Government will provide 25% top up of any funds put in, up to £1,000 a year, in an effort to get people saving for a deposit. The maximum amount that a Lifetime ISA will gift to someone saving for a deposit by 2021 is £5,000.