Investor stamp duty rules criticised - buy to let mortgages

17 March 2009

The current way in which property investors have to pay stamp duty should be changed, it has been argued.

Editor of Property Investors News Richard Bowser described the regime as "illogical", because it forces buyers with multiple properties to pay a levy on their full portfolio, rather than individually on each dwelling.

He added that to switch to individual payments would "give a level playing field" with other buyers.

A move of this kind could be good news for those taking out buy to let mortgages.

Mr Bowser said a claim by the British Property Federation that such a change will be implemented in the upcoming Budget was a case of it "flying a kite", but remarked that he hoped this change will occur.

At present the lowest rate of stamp duty payable on a property is applied to homes costing at least £175,000.

This level was set for a one year period that will expire on September 2nd 2009, with the threshold having previously been £125,000.