Property Investments UK-Tax Facts You Need to Know

If you intend to invest in property within the UK, you have to be aware of taxes that apply to investment property purchase, sale, and rental within the country.

Listed below are property investments UK tax facts that are compiled for your benefit.

Capital Gains Tax (CGT)

  • The Capital Gains Tax or CGT comes into effect while attempting to resell an investment property in the UK. This tax applies to the resale of properties that you have purchased for rental purpose or for other to live in.
  • A property that you are currently residing in will not invite Capital Gains Tax when you decide to sell. You are qualified for Private Residence Relief on all profits you can make on the sale.


Stamp Duty Land Tax

  • Stamp Duty Land Tax comes into effect when making property investments the UK. This tax applies to the purchase of both residential and commercial properties.
  • This tax varies according to the value of the property; higher property values attract higher Stamp Duty Land Tax. For More Information About Property Investments UK, Please Check Property Giant

Rental Income Tax

  • If you make property investments in the UK for rental purposes; you are liable to pay tax on your rental income.
  • However, there are multiple ways to reduce your tax bill by making expense claims.