Property taxation

Question 1

What are the taxes that relate to property trasnactions?

Answer 1

• SDLT/LTT
• VAT
• CGT

Question 2

What are the rates of stamp duty for residential property?

Answer 2

• Up to £250k - 0%
• portion from £250,001 to £925,000 - 5%
• portion from £925,001 - £1.5m - 10%
• portion over £1.5m - 12%

Question 3

What are the rates of stamp duty for commercial property?

Answer 3

• up to £150,000 - 0%
• portion from £150,001 to £250,000 - 2%
• portion above £250,000 - 5%

Question 4

How much stamp duty does a first time buyer pay when buying a property worth up to £625000?

Answer 4

0% first £425,000 and then 5% on the portion up to £625000 - no relief if the property is worth more than £625000

Question 5

What is the stamp duty for people who are buying a second home?

Answer 5

3% on top of the main rates

Question 6

What is the stamp duty for non-UK residents?

Answer 6

A 2% surcharge on the relevant rates

Question 7

When is stamp duty payable by?

Answer 7

Within 14 days of completion

Question 8

What does not apply in Wales for LTT?

Answer 8

First time buyers’ relief for residential properties & the 2% surcharge for non-UK residents

Question 9

When is capital gains tax payable?

Answer 9

On a chargeable gain made by a chargeable person on a disposal of a chargeable asset

Question 10

How is capital gains tax calculated?

Answer 10

Sale price, less the acquisition cost (or value in 1982 if owned prior to then), less allowable expenditure (capital improvements and professional costs) and the CGT annual exemption

Question 11

CGT - What are chargeable assets?

Answer 11

Both freeholds and leaseholds

Question 12

CGT - Who are chargeable persons?

Answer 12

Individuals not companies

Question 13

CGT - What does a disposal include?

Answer 13

Includes a gift or sale at an undervalue