Stamp duty has risen by 3% from previous price bands. To explain this in numbers, historically a property purchased with a value of under £125,000 would have incurred 0 stamp duty, now this will incur 3% of the value thus £3,750. This is now 5% for the following £125,000 and 8% for values above this. Quite an unfortunate rise.
With regards to the tax calculation at the end of the tax year, please note that the wear and tear allowance of 10% of rental income has now gone. This means that careful records need to be kept of actual expenditure incurred on the property and renewal of equipment and other relevant costs. Please keep all receipts and invoices. If in doubt, best to have the documentation and show us to ensure that everything allowance is claimed. The tax calculation will be based on actual income and expenditure.
Please feel free to call one of our friendly team members on 01275 873948 or email us at email@example.com if you need any further guidance on this and we shall be happy to assist you :)