People in the UK currently pay the highest levels of property tax in the world, more than twice the average tax level of the 34 richest countries in the Organisation of Economic Co-operation and Development, OECD.
Properties can generate myriad taxes: council tax, stamp duty, inheritance tax and capital gains tax. These combined taxes amount to 4.1% of the UK’s GDP, way over the OECD average of 1.8%.
Council tax is taken care of by the resident of a property and stamp duty, inheritance tax and capital gains tax apply when selling a property and, as the UK is a nation of homeowners, won’t come as a surprise to most people.
Property Taxes for Businesses
Commercial PT apply to businesses with commercial premises and are comprised of two key areas: business rates and stamp duty.
Business rates apply to most commercial properties, are calculated using something called the ‘business rate multiplier’ and the rateable value of the premises, and are the responsibility of the property owner though this can be transferred to the tenant if the property is rented out. If you run a business from home, you may also incur some level of business rates.
As in all areas of tax, there are exceptions and this is where your accountant should be able to advise you. Examples include businesses whose rateable value has increased substantially and Empty Business Tax Relief.
Commercial PT also take the form of stamp duty for property purchases over £150,000.
Most residential properties are owned by individuals and not companies but some firms tie up ownership of these properties within their portfolios and so can be liable for an Annual Tax on Enveloped Dwellings. ATED isn’t due in all situations so speak with your accountant to find out how you are directly affected.
Commercial property is usually not subject to VAT so landlords will neither charge vat nor be able to claim back any expenses the property incurs.
Property Tax Planning – In more Detail
- Property Tax Planning
- Investors and Landlordss
- non-resident landlords
Property Tax Planning in more detail
Property Tax Planning
Property tax can be complicated and also difficult for some people. This tax has several subjects and specifications, so you have to learn all details before you can calculate the right amount of tax that you are going to pay. You need to know that the property ownership is growing rapidly in the UK. It means that you can find many people who have problems with this type of tax. When you don’t manage your tax properly, you are going to face any issues or problems with this. This type of tax may affect all industries that are related with property.
It is important for you to have proper and accurate tax planning, especially when you invest in property, developments, and also manage any properties. There are some complexities that you can find from this subject. Therefore, most property developers or investors usually hire professional tax team, in order to help them complete their property tax filing procedure easily. Our company is ready to help you solve any of your tax problems, especially that are related with your property taxation procedure. Our team can provide good advice on several subjects, not limited but including:
- Capital allowances, for example during the development and also refurbishment
- Property revenue structure
- Revenue tax relief
- Stamp duty relief
- Land remediation relief
- Recoverable VAT
- Non domicile tax problems
- property tax with negotiations from HMRC
- and any other subjects
PT in the construction sector can be challenging and also difficult for some people. However, you need to have proper tax advice at every step on the development process. Our company has professional experts who can provide integrated solutions for all property developers and building contractors. Our team members have a lot of knowledge and skills, in order to provide the best service for all property developers. We can help you provide the best tax advice in any step during the property development process. We also work together with some professional property agents and landlords. Therefore, we know all complete details about how to file the tax for your property easily.
For Investors and Landlords
For Investors and Landlords
You will be able to find many people who invest in property in this country. Most business owners and individuals don’t have enough knowledge and experience in paying the PT in the UK. You also need to understand that the population grows very rapidly these days. If you want to invest in any properties, you need to learn about how you can minimize your own property taxation on the property. Good tax planning is very useful to maximize your investment, especially when you want to invest in the right property in your area. There are some important details that you need to calculate, in order to maximize your profit. You also need to know about the capital gain tax or CGT that you have to pay for your second homes or commercial properties. Your main home can be exempted from this type of tax now.
For non-resident landlords
For non-resident landlords
If your usual home is located outside the UK, but you have rental property in this country, you need to learn about the Non-resident Landlord Scheme or NRLS. This type of scheme is going to be used for offering the right tax calculation for all non resident landlords. There are some different calculations that you need to know about this type of tax. It is very important for you to follow any rules and regulations from this country, in order to let you continue your property ownership in this country. It is not difficult to follow any steps for paying this type of tax nowadays.
Property investment should never cause any tax issues, especially when you pay the tax correctly. There are some important details that can be followed by all users easily. You need to consult with our professional team members, especially if you want to calculate and also pay the right tax for your investment. There are several different types of properties that you have to know, such as residential, industrial, commercial, and also vacant real property. Each type of property is going to require its own taxation procedures. Contact us now when you want to discuss about how you can pay and plan your tax properly.