What property tax do I need to pay?
There are different forms of property tax that needs to be considered when selling and purchasing a property – Stamp Duty Land Tax and Capital Gain Tax.
Stamp Duty Land Tax
Stamp Duty Land Tax is a lump sum of money that is paid when purchasing a property for £125,000 or more, however if you are a first time buyer Stamp Duty isn’t due for any purchase under £300,000. The government provides a Stamp Duty Land Tax calculator.
Click here for further information regarding Stamp Duty Land Tax.
Capital Gains Tax
Capital Gains Tax may apply when selling a property, however there are circumstances where this tax does not apply. "You don't pay Capital Gains Tax when you sell (or 'dispose of') your home if all of the following apply:
- you've lived in it as your main home for all the time you've owned it
- you haven't let part of it out or used part of it for business only
- he grounds, including the buildings, are smaller than 5,000 square metres (just over an acre). “
Click here for further information regarding Capital Gains Tax.