If you are on the lookout for new properties, know all about the taxes and all things related to buying a property in a particular area or overseas. Buying a property or a piece of land is a big step for people. Investing in real estate is such a reliable option for people. It is easy to get deceived during the whole process if you don’t have enough knowledge and because of the lack of research, so here is what you should know about the tax that you need to pay, in case of buying a new property in the United Kingdom.
So, let’s say that you have your eyes on a particular property and have completed the offer too, now when you move on to typing in contact and signing them, you need to look out for the most important thing called the stamp duty land tax. They pay this tax when a buyer buys a property in North Ireland or England and other areas. A stamp duty computation can help with calculating the same. But this tax is only if you buy a piece of land above a certain price. You need to pay the tax only if you exceed a particular amount and not below that.
How is it calculated?
- So, they only charge the stamp duty for a maximum amount of purchase, and it differs for nonresidential properties and people who are not UK residents.
- If you have a problem calculating the stamp duty, you can very well seek the help of an SDLT calculator, which will help you calculate the tax amount easily.
- The rates are likely to change, so a stamp duty calculator will keep you on track regarding your tax amount.
- If you are a first-time buyer, then the standard rules apply if you purchase above the value of £500,000. If you have a property below that value, you can get exempted from the SDLT.
- The new rules are soon to be in action clearly states that it will levy a 2% surcharge that is further charges for non-UK residents. You can carry it out with the help of overseas property agents in the UK. The rate of the stamp duty, as mentioned above, changes according to the value, date of buying, first or existing owner of a property. So based on this, the rate may range anywhere between 2-12%.
New rules state that non-UK residents will have to pay an extra 2% besides the existing stamp duty. If you buy properties with the help of agents, they can tell you and walk you through the entire process of stamp duty. It shows professionalism and the trustworthiness of the agents that are functioning overseas. Whenever you are getting into the world of real estate, thorough knowledge and a trusted dealer will help you make a firm decision.