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The Budget – Osborne extends stamp duty rise for large investors

March 17th 2016
By: Melanie
The Budget – Osborne extends stamp duty rise for large investors

The long awaited Budget was announced yesterday, and despite appeals from the Residential Property Industry there will be no change on the 3% stamp duty levy due to take effect on the 1 April 2016. It was announced that this charge will also apply to the expanding build to rent sector too. George Osborne, also announced said that he has extended the stamp duty hike so that it also applies to larger investors, those with more than 15 properties.
 
Those people aged under 40 will be able to open a new £4,000 ISA- which can be used to either save for retirement or to buy a first home as from next year. Up to £4,000 can be invested and investors will receive a 25% bonus from the government based on the amount saved. Savers will be able to put money into these ISAs until they are 50, and could be used as a retirement income or to spend on a first home. At the moment the amount which can be paid into an ISA is £15,240 under the new ISA rules, savers will be able to invest £20,000 as from April 2017.
 
Capital Gains tax rates will be cut from the 6 April, although residential property will remain the same. From April 2016, the higher rate of capital gains will cut from 28% to 20% and the basic rate from 18% to 10%. However there will be an additional 8% point surcharge to be paid on residential property that is a second home or BTL property. Capital Gains does not apply on your primary residence.
 
If you would like to find out more about how the changes in this year’s Budget could effect you and your portfolio why not pop into your local branch of Intercounty or call us on 01279 655245.