What taxes and fees do I have to pay to buy British real estate?

Taxes to be paid for the purchase of British real estate:

Stamp duty (StampLBTT)

Stamp duty is a kind of tax levied on the establishment and receipt of legally effective certificates in economic activities and economic exchanges.

When overseas investors buy real estate in Britain, they must pay stamp duty to get government approval. This tax is called stamp duty land tax (SDLT) outside Scotland and land and building transaction tax (LBTT) in Scotland.

Both SDLT and LBTT are progressive tax systems, that is, they will not charge the whole house price at the same tax rate, but charge a premium outside each range. In this way, entering another tax rate range will not cause too much fluctuation of taxes and fees. However, the tax rates and ranges of the two are different, and SDLT has a higher tax rate for overseas companies to buy British houses.

In addition, if the house price is more than 500,000 pounds, the property purchased by offshore companies (that is, non-British companies) will be subject to stamp duty of 65,438+05%. Because the property held in this way is private and does not involve inheritance tax, many high net worth individuals adopt this way.

It is named after the use of stamping on taxable documents as a tax payment symbol. 2065438+April 2006, the new British stamp duty policy was implemented. When buying real estate in Britain, stamp duty must be paid to the Inland Revenue Department when the transaction is completed, and the transaction can finally be recognized by the government. According to the latest tax rate published by the British Ministry of Finance in April 20 16, the specific collection standards of stamp duty are as follows:

1. There is no need to pay stamp duty for purchasing properties with a value below125,000 (including125,000), and 3% stamp duty is required for purchasing rental projects and second homes;

2. If the total value of the purchased property is 12500 1-250000 and the stamp duty rate is 2%, the rental project and the second house need to pay 5% stamp duty;

3. The stamp duty on the purchase of real estate with a total value of 250,0001-925,000 is 5%, and the stamp duty on rental projects and second houses is 8%;

4. The purchase of real estate with a total value of 925,065,438+0-65,438+05 million, with stamp duty of 65,438+00%, and the rental project and the second house with stamp duty of 65,438+03%;

5. If the total value of the purchased property exceeds 654.38+05 million, the stamp duty rate is 65.438+02%, and the rental project and the second house need 65.438+05%.

From 2065438+April 2006, buyers who purchase rental housing projects and second homes will pay 3% more stamp duty. At present, the average house price of housing rental projects in Britain is 65,438+084,000. According to this price, the stamp duty that investors need to pay at present is 1, 180, but after the implementation of the new policy in April next year, they need to pay 5500 yuan, a full increase of 4320!