Details of the new Stamp duty in the UK will be announced just two weeks before its introduction

In connection with the upcoming in the real estate market in the UK changes to Stamp duty for homebuyers that will concern first of all the investors “buy to let” and second home buyers, the real estate market in the United Kingdom are primarily interested in the details of the changes that must start operating on 1 April 2016. However, most likely, the details will not be disclosed until the entry into force of the new rules. As announced by the government until February 1, will be consulted and discuss the new law and the final results will be announced only during the announcement of the annual budget on 16 March 2016, that is, just 2 weeks before the start of the new rules.

It is now known that an additional rate of Stamp duty will apply to purchases if the buyer already has a primary residence and this is his second or more purchase. Furthermore, even if this is your first purchase, but the buyer has primary residence, then such purchase will still apply the increased rate. The increased rate will also be subject to purchase residential real estate companies.

The head of Knight Frank’s Liam Bailey believes that the consultation discussed the question of how to provide people with up to 18 months tax-free period to change the old housing to the new one.

In addition, there are a number of scenarios that require further analysis, for example, parents buying housing for their children, or partnership in equity ownership.

Be affected by new rules and couples and partners. For people living in a shared house, buying a new home is considered a second home be taxed if the old will not be sold within 18 months.

In General, potential investors in the real estate market of London is very concerned about the introduction of an additional tax, I think it is very burdensome. After changing the scale of Stamp duty in December 2014, the real estate market in Central London dipped significantly and prices began to decline. The introduction of the new load will cause the outflow of investment, as most investors, according to polls, find the new tax burden unsustainable. Of course, those homeowners who will buy the object under the new rules, will try to recoup their costs, raising rents, and this, in turn , will further complicate the lives of the tenants, depriving them of the chance to buy their own homes.

® Alice Morgan. G. 29.12.2015

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