Additional property tax

9
Found 6th Aug 2017
Is anyone clued up with additional property tax. I've been looking into it but still can't get my head around it.

Ive currently got a property (property A)and thinking about my options regarding purchasing a property to rent out (property B). I understand that will incur additional property tax.

What I can't seem to get my head around is if I want to sell my current house, (property A) (in 10 years) and move to a new one (property C) will I still have to pay additional property tax on property C. Property B will still be held at this point.

Anyone have an idea?
Community Updates
Ask
9 Comments
Your main property wont be liable for the extra tax so if you sell and but another you will still be on the lower rate.
Original Poster
So as long as I am replacing my main residence I'll just pay the standard rate?
This makes the additional tax bearable.

such a shame they took so long to introduce this. Should have been done years ago. I just want 1 property as a nest egg but all these years it's been too easy to collect 10 buy to lets.
markvirgo41 m ago

Your main property wont be liable for the extra tax so if you sell and but …Your main property wont be liable for the extra tax so if you sell and but another you will still be on the lower rate.

If you buy any additional property you will pay the extra stamp duty. So if you sell Property A in 10 years and buy property C, Property C will be liable for the extra rate stamp duty as you already own property B.
The Pasty. No it won't. If you sell your home and buy another home you do not pay the additional 3%.
Your main/primary residence will always be at the standard rate of stamp duty, it doesn't matter how many secondary/BTL properties you own.

Owning a second property does prevent you being eligible for 'help to buy' and schemes like that on your primary residence however. Just something to be aware of.
Edited by: "delusion" 7th Aug 2017
Maybe let a first time buyer have the pleasure of property B instead of being financially raped by buy to let spivs. If you want a nest egg get a lifetime ISA, private pension, or a second job. What buy to lets will your elderly tenants have to rely on?! They'll probably struggle to pay the rent you'd expect and you'd be forced to make them homeless.
anewman13 m ago

Maybe let a first time buyer have the pleasure of property B instead of …Maybe let a first time buyer have the pleasure of property B instead of being financially raped by buy to let spivs. If you want a nest egg get a lifetime ISA, private pension, or a second job. What buy to lets will your elderly tenants have to rely on?! They'll probably struggle to pay the rent you'd expect and you'd be forced to make them homeless.


Maybe start your own thread if you want it get into the ethics of renting a home, or buying one to rent out.
So no pensions or ISA have funded property ownership? get real! the majority of buy to let's are still in the hands of fund managers. Research before engaging keyboard!
Edited by: "scms" 7th Aug 2017
Original Poster
anewman7th Aug

Maybe let a first time buyer have the pleasure of property B instead of …Maybe let a first time buyer have the pleasure of property B instead of being financially raped by buy to let spivs. If you want a nest egg get a lifetime ISA, private pension, or a second job. What buy to lets will your elderly tenants have to rely on?! They'll probably struggle to pay the rent you'd expect and you'd be forced to make them homeless.


Sorry to disappoint you but it's all about what's best for me now. I've grown up in the wrong time in terms of house prices. I had to live at home until I was 28 to be able to afford my own house. This is due to buy to let landlords buying properties and forcing house prices and rent up. Now it's my turn. Albeit with a 3% surcharge. Something else my generation will get stiffed on but I appreciate it's a small price to pay to given the next generation a small chance at owning a home.

What needs to be clamped down on is people buying 5+ properties. Not the odd one that someone has with plans for retirement.

A lifetime ISA just isn't going to cut it I'm afraid. Not at these rates. Private pension won't have the same return either. A second job?? Don't make me laugh. Why would I want to work more than my current 45 hours.


I appreciate everyones input on the thread. Thanks.
Post a comment
Avatar
@
    Text

    Top Discussions

    Top Merchants