New UK stamp duty regulations make all our properties markedly less expensive at purchase, while increasing the duty payable on buy-to-let properties.
Non-Residential Property Tax Responsibilities Reduced
Stamp Duty Land Tax (SDLT) is a one-off tax payment made when purchasing UK property. These responsibilities were reduced, on 17th March 2016, for non-residential UK property at low purchase levels.
We have already experienced a surge in investment activity as a result, with all of our properties falling within this new category, and many requiring no stamp duty at all.
New system favours commercial property investments
At the same time, the government has increased the amount of SDLT paid on the purchase of a second UK residential property above £40,000 in every price bracket.
This is aimed at controlling the runaway buy-to-let sector in the face of the UK’s housing shortage, which could grow to one million homes by 2022.
In doing so, the government has increased the appeal of commercial property, such as purpose built student accommodation and serviced apartments.
Case study: Westbeach Serviced Apartments
When purchasing a two-bedroom apartment at Westbeach, buyers paid £1,600 SDLT before 17th March 2016.
This has been reduced considerably under new regulations, making Westbeach considerably less costly than a traditional buy-to-let purchase of the same value.
The £200 stamp duty on a two-bedroom apartment at Westbeach is £5,300 less than a buy-to-let property of the same value. View Westbeach, Devon – our new build development of luxury serviced apartments.