A Liverpool-based law firm has suggested that a number of buy-to-let landlords are somehow still unaware that they are liable to pay the additional 3% stamp duty surcharge, introduced in April.
Jasper Dawson, of Kirwans said he is seeing an increased number of cases where investors are only finding out about the charge at the last minute. He said he is concerned that many will see less returns than expected, as a result of the charge.
Stamp duty surcharges
Those most affected are those changing their property’s use from residential to commercial, buy-to-let landlords and smaller scale developers.
The Treasury is expected to raise an extra £3.1bn in tax as a result of the Stamp Duty reforms.
Surprisingly, according to Dawson many investors are not aware they are subjected to the additional costs. As such, they are forced to seek urgent legal advice to assess if there is any way of them legally avoiding paying the tax.
Number of landlords still unaware of Stamp Duty surcharge
Mr Dawson said: ‘Since the 3% stamp duty was introduced in April, we have dealt with a number of clients who have discovered that the residential property they were planning to buy, perhaps to turn into offices or to regenerate and re-sell, is subject to this tax.’
‘Often, these purchasers have been unaware right up until the last minute that this tax affects them, as many assume it only affects those buying second homes for personal use. The range of properties that this charge covers is vast; even off-plan purchases can fall into this bracket,’ he added.