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HMRC rakes in Multi-millions from Landlords paying 3% duty on portfolio properties


 

Landlords contribute most to extra revenue from additional homes stamp duty surcharge.  RPC Property Management can show you ways to add to your portfolio by buying in the North West where you can achieve excellent rental returns and still have scope for capital gains from properties priced just below the Stamp Duty threshold.

The latest statistics released by HMRC to the end of July 2017 show that the number of property transactions at 1,204,730 bringing in £12.4 billion in stamp duty is now broadly the same as the year to the end of July 2015 when it was 1,205,700 with £10.4 billion, but stamp duty receipts have increased by 20% in the same period, equivalent to an extra £2 billion in tax.

Analysis from accountants Blick Rothernberg reveals that, while some of the increase could be due to higher property price most of it is due to the 3% surcharge added to additional homes, in particular properties being bought by landlords.

The chart below shows that Stamp duty for 2nd home ownership starts at £40,000.  Believe it or not, there are properties very suitable for buy-to-let investors available in our area for under the £40K threshold, and Landlords willing to buy and then refurbish can maximixe their investments by doing just that.  Even properties ready to let can sell for under £40,000, especially when fixtures and fittings are not included in the property sale price, but paid as a separate part of the purchase. So if a seller wants £45000 for the property including carpets, curtains, kitchen appliances, fitted wardrobes and an electric shower the stamp duty can be avoided if the basic house sells for £39900 and the fixtures and fittings for £5100. 

Table of Rates for Buy-to-let Properties
Properties over the £40,000 threshold pay the full 3% on the entire band from £0.  If you want to calculate the stamp duty due for any property try this link to the HMRC calculator  http://www.stampdutyrates.co.uk/buy-to-let-rates.html

Rate
Property Price Up to £40,000  -------------- 0%
Over £40,000 and under £125,000----------3%
Over £125,000 and under £250,000---------5%
Over £250,000 and under £925,000---------8%
Over £925,000 and under £1,500,000------13%
Over £1,500,000------------------------------15%
Source: HMRC

For more information, and a conversation about letting property in Burnley, Accrington, Nelson, Padiham, Bolton, Wigan and the general areas os East Lancashire please ring RPC Lettings on 01282 5-459459 or email us on info@rpclettings.co.uk.  We have landlords on our books from the local area, throughout the UK and living abroad. 

Proficiency & Professionalism

After struggling with a few unreliable letting agents over some years, we found Mujeeb Rehman & RPC Lettings over 10 years ago. We transferred our 3 properties to him and have never looked back. We had difficult properties and struggles along the way but were so well supported by Mujeeb and his staff that our journey became manageable. Their proficiency & professionalism was executed in such a personal, prompt and attentive manner that one would be forgiven for thinking one was the only Landlord they were attending to. Unlike other agencies we used, RPC never failed to find tenants within a short space of time. Our rents were paid timeously and all other services were provided efficiently with dedication and care. The fact that staff remain with RPC Lettings year on year is a testament to a happy and well-run company thus providing landlords with continuity and confidence. Other agencies may charge a lower Management fee but in my experience the fees charged by RPC are absolutely justified in respect of their first class service and the reduction of stress for the Landlord. We have no hesitation in recommending this agency above all others.

Heather & Ian Johnson (2017)

Proficiency & Professionalism

In Safe Hands

Since RPC Lettings took over as Lettings Agents for my properties I have found them to be completely professional.  The Inspections they carry out are thorough and if jobs need to be done they are carried out as quickly as possible after consultation with the Landlord. If you phone the Office with a query then they deal with it and come back to you with a reply soon afterwards.  They inform you of any new laws regarding Landlords. The staff are always pleasant and helpful. I would recommend them to any new Landlords as I have nothing but praise for them as they are efficient and I know my houses are in safe hands.

 

Marcia Chadwick

 

 

In Safe Hands

Outstanding areas

RPC Lettings has been managing my property for just over a year. I consider their service to be very professional particularly outstanding in the following areas:

 

All paperwork and contracts have been professionally and promptly dealt with
Rents are collected and paid into my account promptly and I am notified by email
They have sourced quality contractors quickly when problems have occurred

 

In conclusion, I would recommend RPC Letting services to any landlord who requires a professional, prompt and above all friendly service.

 

Dave S. Chunilal

NISYST – Nirvana Retail Solutions Group

 

Outstanding areas

Totally Reliable

I have no hesitation in recommending RPC and the team to all landlords as they have looked after me really well for several years. They are totally reliable in paying rent on time and fully understand how to deal with housing beneficiaries. They also go out of their way to assist with finding or vetting suppliers and sourcing new tenants.  Simon Brickman

 

Totally Reliable

Delighted with Personal Service

“Mujeeb, MD of RPC Lettings  took over the management of our 9 properties over a year ago. I have been delighted by the personal service provided and the ongoing attention that my properties have received. I would recommend RPC to anyone.”  Andrew Mence

 

 

Delighted with Personal Service

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