Calculate what the cost of buying a house in Britain includes.

Britain, as the first country in the world to levy property tax, has a relatively perfect and mature property tax system. Its property tax includes the following parts: transaction stamp duty, value-added tax for services such as lawyer accounting, municipal property tax (which can also be directly translated into local Council Tax), personal income tax on rental income of real estate and capital gains tax generated by selling real estate. The following small series will introduce you to the five taxes and fees mainly involved in the British real estate investment process. Stamp Duty When buying real estate in the UK, stamp duty (SDLT) must be paid to the Inland Revenue Department before the transaction can finally be recognized by the government. According to the latest tax rate published by the British Ministry of Finance on March 2 1 2065438, the specific collection standards of stamp duty are as follows: stamp duty is not required for the purchase of properties with a value below 125000 (including 125000); If the total property value is 12500 1-250000, the stamp duty rate is1%of the total property value; For the property with a total value of 25,0001-500,000, the stamp duty is 3% of the total property price; For the property with a total value of 500,006,5438+0-654.38+0 million, the stamp duty is 4% of the total value; If the total value of the property is more than 6,543,800+0,000 and less than 2 million, the stamp duty rate is 5% of the total value of the property; If the value of the purchased property exceeds 2 million pounds, the stamp duty is 7%; If you buy a property worth more than 2 million pounds through the company, the stamp duty rate is 15%. Value-added tax VAT refers to the tax levied on the value-added part of goods or services provided in the course of business in the UK. In the process of buying a house, almost all lawyers and accounting services need to pay VAT. Law firms that provide services will provide specific lists of fees and taxes before real estate transactions according to specific service matters. Municipal Property Tax Council Tax In Britain, all properties have to pay municipal property tax to the local government every year to pay for the local government's public service facilities, such as libraries, schools, transportation, garbage collection and sanitation facilities. According to the total price of real estate, the amount of municipal property tax is also different. Usually, the municipal property tax in Britain is between 900 and 3000 pounds a year. Here, it is necessary to remind British real estate investors that in many cases, they can apply for municipal property tax relief. For example, if all tenants are full-time students, they can apply to the government for exemption from municipal property tax; The municipal property tax of most rented houses shall be borne by the lessee; If the house is not rented, but it is not the main residence of the owner, the owner can apply for property tax reduction; Only the real estate where adults live can apply for the reduction or exemption of municipal property tax. Personal income tax According to the British tax law, both British permanent residents and overseas investors are required to pay personal income tax on their real estate rental income in the UK. Usually, the landlord or intermediary agency collects the rent first, and then pays the tax due for one year at the end of the British fiscal year. According to the regulations, landlords can use legal property fees to offset some taxes. If you apply for a mortgage loan from a bank when buying a real estate, the interest paid to the bank on the mortgage loan (excluding the principal) can be deducted from part of the tax payable. In addition, the maintenance costs of all properties such as decoration and maintenance can also be used to offset part of the tax. In addition, for overseas investors, the transportation expenses used by the owners to invest in the housing management business can also be tax deductible. In addition, there is a certain tax exemption for personal income in Britain, and the personal income tax rate is increasing by grades. For China investors, according to the tax treaty signed by the Chinese and British governments, it is clearly stipulated that any income from British real estate, if taxed in Britain, will enjoy the tax-free policy in China, thus avoiding double taxation for China real estate investors. Capital gains tax Capital gains tax is a tax levied on the income from the sale or transaction of capital goods such as stocks, bonds, real estate, land or land use rights and other investment assets. There are two tax rates of capital gains tax in Britain: 18% and 28%. The capital gains tax on real estate sales in Britain is only for investment in rental housing. The income from the sale of owner-occupied housing is not subject to capital gains tax. Capital gains tax is levied according to different standards according to personal income: if the personal income tax rate is as low as 20%, the capital gains tax rate is18%; If the personal income tax rate is 40% or above, the capital gains tax will be levied at 28%. In addition, the capital gains tax in Britain is a comprehensive asset tax. The income of one asset can offset the loss of another asset, and the capital gains tax borne by everyone is the total income of all assets paid as a whole. In addition, if you decorate the house before selling it, as long as you can provide concrete evidence, you can reduce this part of the investment in the value-added part. Buying a house is a big deal. People who invest in real estate in Britain should make a comprehensive survey of the British real estate market, consult authoritative experts in the industry, and learn more about the taxes and other charges involved in buying a house, so as to make the most sensible and reliable choice and avoid unnecessary troubles.