A Blackpool property expert is warning investors they will face increased taxes next year following announcements in the recent Autumn Statement.
George Osborne announced a number of tax measures which will hit property investors. These include increased Stamp Duty Land Tax charges from April 1 next year for additional residential properties, including second homes and buy-to-let.
Fears have been raised by some in the property sector that the move is an ‘attack’ on small private landlords, as the new rates will not apply to corporate investors or funds investing in property.
The rates will mean for additional properties, an extra three per cent tax will be charged on properties worth less than £125,000, and 5 per cent on those worth between £125,001-£250,000.
Sarah Barnes (right), head of Residential Property at Napthens solicitors, said: “This additional tax is clearly targeting those individuals who have second homes which may be standing empty part of the year.
“However, it is likely to seriously impact investors who have multiple properties, who are therefore making a living from their investments and will have most to lose.”