How To Avoid Stamp Duty On Investment Property: In a recent video, I talk about the latest UK budget. The major change that will affect you as a property investor is stamp duty tax hikes. This could seriously impact your profits! With the new minimum rate at 5% for investment properties, buying property just got a lot more expensive. Most of the other changes are unlikely to impact you or me, but this one is a big one!
In the video, I explain everything you need to know about the new budget in detail. If you are a property investor, I highly recommend watching the full video until the end. You can find the video on my YouTube channel or at the top of this page.
This stamp duty hike is going to have a huge effect on many landlords and property investors. But with the right knowledge, there are things that you can do. In this article, I will show you how to avoid stamp duty on investment property legally.
This information will be invaluable to many people, but I need your help reaching them. If you find the information in this article helpful, please consider sharing it with your friends on social media. Together, we can keep the property investment community informed!
1. How To Avoid Stamp Duty On Investment Property: Do Not Evade Taxes
Avoiding tax is legal. In fact, it normally involves doing what the government want you to do. The government tax some things and not others, because they want to incentivise people to do certain things. Tax evasion, on the other hand, is illegal, and is when you don’t pay tax that you actually owe. You should always pay taxes that you owe and should never engage in tax evasion.
The government announced recently that they will be spending more money to catch people that are evading taxes. Make sure you understand the rules and follow them.
2. How To Avoid Stamp Duty On Investment Property: Buy Commercial Property
If you are buying a commercial property, you are likely to be exempt from stamp duty. Up to £150k there is no stamp duty on commercial property, after that the first £100k is taxed at just 2%. This means a lot of people will now be looking at buying commercial property.
Take a look at the taxes that apply to your property purchases with an experienced property lawyer. The information here is just from my personal experience, and you should seek independent advice about your situation. That said, you can save on stamp duty with commercial real estate.
3. How To Avoid Stamp Duty On Investment Property: Buy Uninhabitable Property
If you buy a property that is uninhabitable, there is no stamp duty up to the first £150k. After that, there is a sliding scale. Buying an uninhabitable property allows you to add value to the property, sometimes with relatively easy fixes. This is particularly useful when doing the buy, refurbish, refinance, rent (BRRR) strategy, which allows you to invest the same pot of cash over and over again.
Understanding what makes a property uninhabitable is important. It can often be somewhat simple issues with the home. Speak to a property professional and seek legal advice when considering buying an uninhabitable property.
How To Avoid Stamp Duty On Investment Property And Other Property Secrets
Now that you know how to avoid stamp duty on investment property, it's time to learn more property secrets! Join me at my next £1 training event!
On the course, you will learn how to:
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Become a property investor using other people’s money so that you can get started straight away
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Utilise the 5 different types of raised finance so that you know exactly what to offer and when
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Find the perfect properties for the BRRR strategy
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Recycle your money so that you can ‘rinse and repeat’
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Build a power team you can trust, so that you can save time and money
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And much more!
Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!
