In the autumn budget this year, it was announced that from 31st October 2024, the stamp duty tax on second homes would increase from 3% to 5%. But what does this mean and how does it affect you?
For example, on a property priced at £350,000, the stamp duty has risen from £15,500 to £22,500. While this poses challenges for investors, there are ways around it.
By purchasing through a Special Purpose Vehicle (SPV), you can cut this stamp duty to only £1,750, saving over £20,000!
Simply put, an SPV refers to a limited company set up specifically for property investment. You pay less stamp duty because it’s based on the transaction value of the shares in the limited company, and not the property itself.
SPV-owned properties are generally difficult to find, but we can help you source these smart investment opportunities.
Contact us to learn more about SPV’s and to see how we can help you save on your next investment.
