Buying a house in London, what registration taxes should you consider?

What stamp duties apply to Italian resident buyers?

If you are considering buying a house in London or investing in England, it is essential to consider the tax implications. Most of the time, taxes can be a “deal breaker” and kill the deal and the related return on investment.

In England, Wales and Northern Ireland, stamp duty is a tax paid when buying a property. The stamp duty you pay depends on the property’s value and whether it is your first or second home.

Stamp duties for first homes

  • Up to £300,000: 0%
  • £300,001 to £500,000: 2%
  • £500,001 to £925,000: 5%
  • £925,001 to £1,500,000: 10%
  • £1,500,001 to £2,500,000: 12%
  • £2,500,001 to £12,500,000: 15%
  • Over £12,500,000: 20%

Rates for second homes

  • Up to £500,000: 3%
  • £500,001 to £925,000: 10%
  • £925,001 to £1,500,000: 12%
  • £1,500,001 to £2,500,000: 15%
  • £2,500,001 to £12,500,000: 20%
  • Over £12,500,000: 25%

Surcharge for non-residents at 2%

Non-residents in the UK are subject to an additional 2% charge on top of the base rates.

Exemptions

Non-resident status is determined if someone is not present in the UK for at least 183 days in the 12-month period prior to purchasing a property.

Stamp duty exemption

There are some exemptions from stamp duty, such as for properties worth less than £125,000, for properties purchased by people with disabilities, and for properties purchased by charities.

Calculation of the tax

Stamp duty is calculated on the declared value of the property. The declared value is the market value of the property, as determined by a real estate agent or a surveyor.

Payment of the tax:

Stamp duty must be paid at the time of completion of the purchase of the property. Payment is made to the government through the HMRC Revenue and Customs website.

Consulting

We at Welcome Home have been helping and advising our clients for years in their search for their home in London or any investment.

Please contact us for a free consultation and set up your safe purchase.

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