On Wednesday 8th July 2020, Chancellor, Rishi Sunak, announced a stamp duty holiday for property buyers in England and Northern Ireland, effective immediately, until 31 March 2021.
What does the stamp duty holiday mean for property investors?
This temporary stamp duty cut means investors can transfer rental properties to a limited company with lower charges than before.
Landlords have been given the opportunity to take advantage of the stamp duty holiday to move their properties into a company structure. Investors who currently own properties in their own name could save on tax if they owned their homes through a company.
For example, a landlord purchasing a property for £232,000 (the average house price) will pay £6,960 in stamp duty under the discount compared to what previously would have been £9,100 under normal circumstances. The savings can be even bigger when dealing in larger portfolios.
A number of landlords are already looking at refinancing their portfolio. If you are interested, please contact us to discuss your requirements.