5% Residential Stamp Duty CHAOS in 2024 Autumn Budget What You Must Do Next

[@coolco1619]

That is absolutely unfair to have started new rules immediately! 😢

[@UK-Property-Tax-Accountants]

I totally agree. CGT change is imminent as well.

[@tetiraelian]

What is even the point of a Stamp duty if not Theft? This tax does not bring anything of Value to the House purchasing process. It's a stupid and unfair tax.

[@UK-Property-Tax-Accountants]

Agreed 👍

[@praveenreddy449]

Looting money from people

[@UK-Property-Tax-Accountants]

@praveenreddy449 the IHT point is even worse. A video on that coming shortly

[@tetiraelian]

@@UK-Property-Tax-Accountants This is so disheartening. I am working extremely hard to save enough money to be a property investor. I was very close to my goal but I am now re evaluating my options.

[@UK-Property-Tax-Accountants]

@tetiraelian I totally understand that. Don’t give up Hope just yet. Property does not have to just involve residential property. It can involve commercial property and mixed used property.

[@chakotay4040]

what does this mean if you already are half way through the process and have the mortgage accepted already? considering all the costs including stamp duty is accounted for untill now

[@UK-Property-Tax-Accountants]

If you have not already exchanged then the 5% instead of the 3% becomes due

[@Thereishope664]

Don't forget the extortionate fees that auction houses now charge buyers of their auction lots. Often in excess of 4%. Anyone buying a London Property at auction for £500K will pay £37,500 SDLT plus auction fees of up to £20K. That's a total of £57,500. Madness!!!

[@UK-Property-Tax-Accountants]

Blooming ouch 😫

[@ellensamir374]

Really? I think you are talking about modern auction methods I am sold, which is 4.5%, for traditional auction, it is around 3%, and some auction houses only charge 1%.

[@dobbydoughnuts9941]

A theoretical scenario: Say i had a limited company that held 10 properties valued at £200,000 each, and they are funded and purchased by me, all through the limited company to begin with. Say the company had 1000 shares issued, and my kids owned between them 999 of those shares, and I owned 1. Upon my death, would the entire company be subject to inheritance tax? Or just the 1 share I own? And another question - if I wrote in my will that upon my death, my 1 share be distributed between all shareholders - Would this one share be exempt from inheritance tax on the rest of my estate and qualify for the business relief, as the company is producing profit and actively functioning, and I purchase the properties say 4 years ago. Thanks in advance.

[@UK-Property-Tax-Accountants]

This is a great question(s). The children's shares belong to them so cannot form part of your estate. Your share may have to be split as one dividend by +1 is not possible. Please do get some tax advice for the wider IHT contextual matters.

[@dobbydoughnuts9941]

That’s great. Thankyou :)

[@ryanpatel4171]

What happens if you’ve exchanged on contracts prior this change, but completing after the change?

[@UK-Property-Tax-Accountants]

You will be on the old 3% if you have already exchanged 👍

[@ryanpatel4171]

@ thanks for the reply. I was supposed to complete on a new build mid-october but the developer is behind schedule!!

[@vikasmalik3899]

@@ryanpatel4171 If you are a FTB and completing after 31st March 2025, then you'll have to pay full stamp duty, regardless of whether you've exhanged or not.

[@waynep613]

Great video thank you! Quick question. I’ve just inherited 47.5% of my father’s estate which includes his house valued at £200k. If I was to buy out the other parties of their 52.5% stake in the house would I have to pay stamp duty? (I already own my own home) Is there a way of getting around this? If stamp duty is payable, would I pay the 5% on the whole property valuation or just the 52.5% that I’m buying I.e £105,000 worth of property I’d be buying which at 5% would be £5250. It seems very unfair if I do have to pay stamp duty in my late father’s house. Thank you

[@UK-Property-Tax-Accountants]

Sadly!! Yes you would pay unless they gifted their share to you.

[@TF-mc6yj]

There are very few types of properties that aren't subject to the 5% charge. Most property investors will now try and buy them. The mass increase in demand for these properties will result in the price of these properties increasing by more than 5% due to supply and demand...

[@UK-Property-Tax-Accountants]

I can see that happening

[@theconspiracyfactualist.144]

House builders will have to take this into consideration.

[@UK-Property-Tax-Accountants]

Indeed they will

[@huwsparky175303]

Anyone know how this affects properties in wales? We've just paid 4% on a 2nd property that we recently exchanged on.

[@UK-Property-Tax-Accountants]

This may not follow English rules. Best speak with your solicitor. Wales no long applies Stamp Duty rules

[@avishekghose3299]

Is this applicable to Wales as well?

[@UK-Property-Tax-Accountants]

To be honest I am not sure 🤔

[@Matt-lz4ly]

We sold our main residence back in 2020 and moved into rental, but also own a property we rent to students. After nearly 5 years of searching for a home for ourselves we finely had an offer accepted a few weeks ago. However, just found out in time for this tax hike, even though we will be replacing our main residence, we still have to pay the higher rate of tax, because we didn't replace it within 3 years?!!! Yet, at no point will we have owned more than 1 main residence! The 3 year rule is crazy, how is anybody supposed to know about this until they are in a position to buy a house again, at which point its too late?! Our stamp duty bill just went up £30k, that's 50% of the deposit! Absolute theft! Game over... back to renting! 😞

[@UK-Property-Tax-Accountants]

One option is to move your buy to let to a company or move back into the rental. Get some tax advice as there are ways around this

[@Matt-lz4ly]

Unfortunately the property would lose its HMO planning status if we moved into it. Also the cost to move into a company look huge. Our Accountant hasn't offered any solutions, they've just said we fall foul of Condition D and said to get the solicitor to advise, who has gone silent since we raised the issue. Nightmare!

[@picturetony9567]

I own a property with my brother and will be buying somewhere for myself however my price limit has now dropped due to this!

[@UK-Property-Tax-Accountants]

I certainly feel your pain 🥲

[@AfterGraffiti]

If im a foreign investor buying a BTL property under UK company do I still need to pay 5% or will it be less? (This will be my first UK property and I own the place I live in outside of UK)

[@UK-Property-Tax-Accountants]

A UK limited company must pay the 5% SDLT higher rate

[@nikesh18]

Can you provide a fee to help with a stamp reduction based on a incomplete property?

[@UK-Property-Tax-Accountants]

What is your situation?

[@nikesh18]

@UK-Property-Tax-Accountants we are buying a place which may be subject to stamp duty reduction based on a part complete extension / subsidence / outdated electrics. Just wondering if you are able to assess /submit liability ?

[@UK-Property-Tax-Accountants]

@nikesh18 feel free I book a call with us here survey.zohopublic.com/zs/80zrXp

[@huwsparky175303]

​@@nikesh18I've read on forums that getting this reduction is next to impossible in practice. Good luck though 🙏

[@UK-Property-Tax-Accountants]

This is very unlikely as you are not doing the build as a trades person

[@CROSSNSHOOT]

I wonder whether the build to rent corporations will get some kind of back door special exemption? The cynical side of me tells me this is done to screw small time landlords

[@UK-Property-Tax-Accountants]

Build to rent do not pay residential rates of stamp duty so they have got an incentive in place

[@CROSSNSHOOT]

@ so yes, how convenient for these greasy politicians! This applies to both political Parties

[@elsaanna3773]

Does this implement on 31 March 2025 ? Or now ? Hopefully not madness to its peak !

[@UK-Property-Tax-Accountants]

It’s already in place

[@BobBuilder-mq9wr]

There still scrapping the £250k back to £125k in april , they just didn't want to mention it but its in the manifesto

[@UK-Property-Tax-Accountants]

I did wonder why they did not mention that in their budget speech

[@richardbenson7264]

Total Scan artiists. No wonder everyone wants to leave .

[@UK-Property-Tax-Accountants]

I know I did to Spain 🇪🇸

[@Rob-ht6zt]

How would it increase if I am buying my second residential property? As there are different bands of stamp duty from up to £250,000 then £250,001 - £925k? Which used to be 3% then the next band 8% anyone know how this has changed now?

[@UK-Property-Tax-Accountants]

If you keep your existing property then the higher rate 5% is due plus the banded rate as you will be buying additional property

[@Rob-ht6zt]

@ ok so is there just an increase in the band up to £250k where it has gone up to 5% or is there an increase in all the bands as I know from 250.01 to 925k it is 8% will that still be 8% tax? Or does that also go up?

[@UK-Property-Tax-Accountants]

You will need to speak with your solicit about your specific calculation . The extra 2% is on the total purchase price

[@MacSaxe]

What about a Brit setting up a single member US LLC and buying through that foreign LLC? It’s a foreign company to UK, even though it’s a pass through entity. Just spitballing lol

[@UK-Property-Tax-Accountants]

I would not bother. It is a tax trap and bomb waiting to go off

[@ISAmillionaire7789]

It’s a complete shamble Budget…. ! Some U turns will need to be considered !

[@UK-Property-Tax-Accountants]

I would hope so 🤞

[@time4advancement244]

Pensioners overwhelmingly voted Labour. The old folk will reap what they sow

[@UK-Property-Tax-Accountants]

One thing I would say is that the people were lied to. A re-vote should be on the cards.

[@BigBoss-dm5bn]

I am actually in a weird situation. I've got a property abroad, but worth under £40k. And I can't figure out what my SDLT will be for my first UK house which I am currently in process of purchasing. Any ides?

[@UK-Property-Tax-Accountants]

You will pay the additional 5% because you have a second property, no matter where you are based.

[@BigBoss-dm5bn]

But previously I was exempt as the property value was under £40k, and I can't find anywhere whether this rule is changing or not

[@smartfrogeducation4134]

With Stamp Duty now at 5%, do foreign investors still pay the additional surcharge on top of this new tax rate? Normally I pay SDLT 3% plus a surcharge of 2% as a foreigner.

[@UK-Property-Tax-Accountants]

Yes indeed. Of it is your second UK property you would pay 5% plus the 2%

[@TomerAmsalem]

Hi. It is my understanding that according to the video, the SDLT for Non UK residents will not increase. Can you please clarify this response in light of the video? @@UK-Property-Tax-AccountantsHi. I

[@TomerAmsalem]

@@UK-Property-Tax-Accountants Hi. Could you please clarify your response here in light of your statement in the video that no increase in Stamp Duty will apply to non-UK residents? Thanks!

[@UK-Property-Tax-Accountants]

@TomerAmsalem non-UK residents have a 2% surcharge. If they do not have a UK property in their name, they will not have to pay the 5% additional rate I spoke about in the video. Therefore they have a clear advantage over a UK resident.

[@AurangzebPTI]

People living in UK needs to wake up get united and raise your voice against this criminal act from these labour idiots.

[@UK-Property-Tax-Accountants]

Agreed 👍

[@discobassline]

Welcome to Labour Britain favoring foreigners.

[@UK-Property-Tax-Accountants]

Indeed 😤

[@jpandyaraja]

but dont forget cgt for foreigners will penalise them more than the locals

[@UK-Property-Tax-Accountants]

Not necessarily. There are many gaps in the UK tax code for foreigners

[@bootangy]

lol thanx labour

[@UK-Property-Tax-Accountants]

Indeed 😩

[@fjaff]

this crap country became even crapper. Overpriced toilet.

[@UK-Property-Tax-Accountants]

I feel your pain like many others 😒

[@arkstudios1]

Sick of this country! Shit hole!

[@UK-Property-Tax-Accountants]

I feel your pain 😔

[@laarm888]

2% more for someone in the extremely privileged position to be able to buy a second property isn’t going to cause any sleepless nights me thinks.

[@UK-Property-Tax-Accountants]

I would be interested to see what others might say on that

[@marcus.H]

Unfortunately its not so simple. For some people, especially with such short notice, especially people who only have a smaller deposit, this will be a literally impossible bill to cover. Some sales will fail due to this increase. Not everyone who buys property is wealthy. Many are in a lot of debt and barely treading water. An extra bill can push them under 😕

[@laarm888]

@@marcus.H this is about people buying a second property- I doubt any of them are in debt. The immediate implementation is problematic though. I wonder if HMRC would consider deferred payment on SDLT for those due to complete within the next 4-6 weeks etc?

[@marcus.H]

@@laarm888 I hear you. You have good intentions. To be clear, younger or poorer buyers will be hit hardest by this additional tax. The young person who doesn't trust the pension funds may want to own a second home to rent out rather than an invisible pension, so this tax will hit those ones hardest. They use a mortgage because they can't afford to buy it because they don't have the funds. But the bank won't lend you the sdlt to pay. This new bill means some just won't be able to complete on that additional property yet. It doesn't hit rich people so hard. Rich people will find it down the back of the couch. But a 5% fee on top of the mortgage deposit is going to stop some buyers - the poorest buyers Personally I don't do politics. I think mixed results will happen either way. But I think it's shortsighted when people think rich people will be hit by these taxes hard. They are smart and their accountants are even smarter. I wonder how all of this will actually affect them. Who knows. It's a mystery

[@Ged-hu5wl]

⁠@@laarm888I bought a flat 15 yrs ago and due to poor investment from the government in the town centre all the properties in the area are in negative equity. I’ve saved for years to buy another property. As I’m self employed I needed to raise a 10% deposit, along with £6k stamp duty only to find out I need to find a further £4k. All I’m doing trying to be self sufficient so I’m not reliant on the system. I don’t object to tax increases if they need to be done, but increasing this overnight is going to cause a lot of worry for people just trying to secure their future. Everyone’s situation trying to buy their second property will be different so it’s a bit unfair to be so assumptive with your views.

[@shazoids]

Better than Tories but still a bunch of cnts

[@UK-Property-Tax-Accountants]

Agreed 👍