George Osborne made his autumn announcement yesterday informing the country that an additional 3.0% stamp duty will be placed on second homes and buy to let properties.
The details are still being released by the Treasury, but in the Autumn Statement, it was made clear that this additional tax would incur around £1 billion to aid the building of additional housing in the UK.
The Autumn Statement also revealed:
- £200m to help generate 10,000 new homes to let that tenants can live in for five years at sub-market rents while they save for a deposit. They will then be given the ‘first right’ to buy the home;
- £2.3 billion to be paid to developers to build starter homes for sale to first time buyers who will receive 20% discounts. These homes will be capped at £450,000 in London and £250,000 nationwide.
- £4 billion will help build 135,000 ‘Help to Buy: Shared Ownership’ homes for those earning less than £80,000 across the UK or £90,000 within the Greater London area.
- An additional £400m will help build 8,000 specialist homes for the elderly and those with disabilities.
Under digital infrastructure announcements regarding HM Revenue and Customs, it appears likely that those who are subject to capital gains tax when they sell a second or investment property, may have to pay within 30 days of the completed sale by 2019 which is a much smaller timescale than present.
For examples of how this will effect you click here