Overview of UK Property Taxation

George's attack on property owners:

Buying

Higher rates of Stamp Duty Land Tax apply to purchases of additional property, when at the end of the day of the transaction on which the completion takes place, two or more properties are owned and the main residence is not being replaced.

Owning & Rental Income

Property income, regardless of whether you are a UK resident or Non-UK resident, will be assessed for income tax.

A mortgage interest rate restriction is being phased in commencing this tax year. No deductions for finance costs will apply from 2020/21.

Selling

A Capital Gains Tax charge may arise on the disposal of a property. The gain will depend on the circumstances and method of calculation.

Gains subject to 28% CGT for higher rate tax payers, or 18% for lower rate tax payers.

Re-basing computation for non-residents - from 5th April 2015 til disposal. Other calculation methods are available so further advice should be sought.

Gifting

Capital Gains Tax, Stamp Duty Land Tax and Inheritance Tax may apply depending on your circumstances.

Treatment on Death

Value of property will be evaluated for inheritance tax purposes.

Inheritance Tax of 40% above the available nil rate band on transfers available other than to spouse / partner.

Tax will depend on personal circumstances and tax rates may change. It is vitally important to seek appropriate advice.