View more on these topics

Bob Young: Small landlords will bear brunt of B2L tax changes

Bob Young Fleet 2014

Consultation on buy-to-let stamp duty increases reveals only ‘largescale’ investors will benefit from exemptions

The period between Christmas and New Year might not seem like the best time to issue a consultation paper but this is exactly when HM Treasury decided to publish its much-anticipated one on the higher rates of stamp duty for additional properties, announced by the Chancellor in his Autumn Statement. Perhaps of most interest to landlords are the potential exemptions, particularly those for purchases made within a limited company structure.

In his statement, Osborne suggested an exemption might be applicable for companies that already owned a portfolio of 15 or more residential properties – the objective seemingly being to move the buy-to-let sector more into the corporate space.

In the consultation, this is referred to as “the treatment of largescale investors” and it is clear the Government has no intention of this exemption being available for smaller, private landlords.

The Government is seeking responses on allowing individuals an exemption from the stamp duty increases. However, this would only be for those individuals who already own 15 properties or those who are bulk-purchasing 15 or more properties at one time.

I have to say that 15 seems an arbitrary figure and there is no evidence provided in the paper to back up why it has been chosen.

Most stakeholders would agree that, especially with the impending tax relief changes, the limited company structure is going to gain in popularity and there may well be some justification to allowing those who have a much lower number of properties within such a company to be exempt from the stamp duty increases. This does not appear to be something the Government is likely to countenance, however.

Bob Young is chief executive of Fleet Mortgages



Sally Laker: It’s time for lifestyle mortgages

We need to move on from selling the plain vanilla mortgages we sold 20 years ago, with rate as the key differentiator It appears that 60 is the new 50 and 50 is the new 40. In fact, there is an increasing population redefining non-retirement because of their aspirations. This new Generation 50 has grown […]

Nationwide CEO makes New Year Honours list

Nationwide chief executive Graham Beale and former Monetary Policy Committee member David Miles are among the financial services names recognised in this year’s New Year Honours list. Beale, who had been Nationwide’s chief since 2007, has been handed a CBE for his services to the financial services sector. Miles had two terms on the Bank […]


B2L experts: ‘Landlords must act now to avoid stamp duty hike’

Landlords have just a few weeks to submit their limited company applications or risk being stung with whopping stamp duty bills in April, say experts. In November’s Autumn Statement, Chancellor George Osborne revealed stamp duty rates for landlords would be 3 percentage points higher than residential purchases from 1 April. On a property worth £275,000, […]


Countrywide hires corporate relationship director

Countrywide has appointed Scott Burman as corporate relationship director. Burman joined the new firm yesterday from Lloyds Banking Group, where he was national housing development manager. He will join Sally Young as one of two corporate relationship directors in Countrywide’s corporate business team. Burman says: “I am delighted to be joining Countrywide at the start of […]


News and expert analysis straight to your inbox

Sign up