The Spending Review and Autumn Statement and your money

November 26, 2015

It feels like every other month that we’re analysing another Statement, Budget or Review. Following the latest announcements…we have very little to say!

If you want to know the full details of the Review and Statement, you can find plenty of summaries elsewhere online, so we won’t waste our time regurgitating who said what.

There was one main headline which we think will have the most direct impact on our work:

Stamp duty rises for buy-to-let landlords and second home owners

In recent years, a lot of investors have turned to property as a good bet when it comes to seeing a return on their investment.

But from April 2016, buy-to-let landlords and people buying second homes in England and Wales will have to pay a 3% surcharge on each stamp duty band. To give you an idea of what that actually looks like, for the average buy-to-let purchase of £184,000, that equates to an extra £4,320.

Buy-to-let landlords were also hit with the news that from April 2019 they’ll have to pay any Capital Gains Tax due within 30 days of selling a property rather than waiting to the January following the end of the tax year of sale.

There has, perhaps understandably, been a bit of backlash from landlords who consider these measures an unfair attempt by the Chancellor to eradicate the buy-to-let market.

We say: it’s probably not quite as dramatic as that. It WILL mean a bit more careful planning when it comes to these kinds of investments to make sure property is the right place to put your money. It will also mean being in control of your cash flow to make sure you can pay the necessary bills at the right time. It may mean that there are better ways to grow your money than investing in property…but that has always been the case.

Not much else to report really. The state pension rise of £3.35 per week next year is better than a poke in the eye, but it’s not really going to make a huge difference in the lifestyle you’ll be able to enjoy in your dotage. We’ll just reiterate a point we’ve made before: make sure you’ve got alternative provisions in place so you have a guaranteed income for your later life.


This article is for general use only and is not intended to address your particular requirements. It should not be relied upon in its entirety and shall not be deemed to be or constitute advice. 

GreenSky Wealth Limited is authorised and regulated by the Financial Conduct Authority. FCA No. 629624. Registered Office as above. Registered in England and Wales, Company No. 07103441.  The Financial Conduct Authority does not regulate Buy To Let Mortgages.