During his Autumn Statement on Wednesday, George Osborne announced that buyers looking to purchase a second property, including buy to let and second homes, would be subject to a higher rate of Stamp Duty tax.
A spokeswoman for the Treasury said that while there was a consultation due to be launched shortly, the government intends to exempt portfolios consisting of 15 or more properties.
The decision will be seen as a blow for smaller buy-to-let landlords who are still reeling after the Chancellor announced that tax relief for landlords would be limited to the basic rate of 20%.
Writing in an exclusive blog for Mortgage Solutions, Bob Young, CEO of Fleet Mortgages, said: “The details suggest that it [tax hike] will not apply to ‘corporates or funds making significant investments in residential property given the role of this investment in supporting the government’s housing agenda’.
“But, what do we mean by ‘corporates’? Will this mean that purchases within any limited company structure will not have to pay the extra stamp duty rates? Another matter for the consultation period I would think.”
The Stamp Duty increase will be effective from 1 April next year with a consultation to be launched in due course.