What does the British real estate tax include?

First of all, the main housing costs of buying a property in the UK include:

Full possession: municipal property tax.

Property insurance and miscellaneous expenses.

Lease: municipal property tax.

premiums for property insurance

Property management fee

Miscellaneous expenses such as land rent and property maintenance.

Although there is a lot of housing expenditure in Britain, the rate of return is satisfactory after excluding mortgage interest and taxes, and the average annual income is about 7- 15%.

Mortgage repayment cost (mortgage? According to each investor's mortgage loan contract, mortgage loans are divided into several different types, such as fixed interest rate and floating interest rate.

Property buyers with regular fixed interest rates:

During the regular period, there is no need to consider that the bank will adjust the mortgage interest, as long as you abide by the mortgage contract and reserve enough funds in the bank account automatically deducted by the mortgage bank.

Mortgage buyers with floating interest rates:

You should pay attention to the bank's interest rate adjustment. Most banks will only be in the Bank of England (Banbk? Yes? England) Adjust the mortgage interest rate accordingly when adjusting the benchmark interest rate. Of course there are exceptions. Some banks will adjust interest rates at any time with advance notice to mortgage buyers.

Furnishing For investors who buy new houses, buyers can buy furniture and home appliances according to their own preferences and needs.

For investors who want to rent a house, it is best to buy suitable furniture and electrical appliances according to the residents' accommodation needs.

Picture overview of various taxes and fees

Municipal property tax (Council? Tax) The municipal property tax in Britain is determined by the local government according to the April market value of the British Real Estate Appraisal Agency 199 1. The amount of municipal property tax will be different with different property values. Generally speaking, municipal property tax accounts for about 0.05% to 0.4% of the current house price.

In addition, the British municipal property tax is divided into eight levels:

The smaller the area and value of real estate, the lower the municipal tax;

The larger the area, the higher the value, the higher the municipal tax, and the annual cost ranges from 400 to 5000.

In many cases, homeowners can apply for municipal property tax relief:

Tenants are full-time students and can apply to the government for exemption from municipal property tax.

Most of the municipal property tax of the rented house is borne by the lessee.

If the house is not for rent, but it is not the main residence of the owner, the owner can apply for property tax relief.

If there is only one adult living in the property, you can apply for reduction or exemption of municipal property tax.

Personal income tax (income? In Britain, everyone needs to pay personal income tax on the rental income of real estate in Britain.

The landlord or intermediary will collect the rent first, and then pay the tax due in 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.

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.

Land rent (ground? Rent is generally for non-permanent property. In the purchase contract, the amount of land rent and the time of payment will be clearly indicated, and the amount of land rent depends on the type of property.

Family insurance Family insurance is divided into two categories:

Construction insurance (construction? Insurance)

Property insurance (content? Insurance)

Mortgage banks usually regard construction insurance as a necessary condition for approving mortgage loans.

1. Construction insurance mainly covers house losses caused by fire, flood, explosion, lightning and other natural disasters and accidents.

2. If the house is in an area with high incidence of cases and floods, the insurance cost will be higher than the average cost.

Property management fee (service? Fees) Property management fees are generally for non-permanent property houses. Similar to China, it is mainly used to pay for security, community health, elevator operation and maintenance, and so on. The property management fee is also levied according to the area of the property, and the annual fee is 0.5%- 1% of the total house price.

Agency fee (rental? Agent? For overseas investors or foreign investors, it is very common to choose a property managed by a discretionary intermediary, so it is definitely necessary to pay an intermediary fee. The agency service fee is generally about 65,438+00%-65,438+05% of the total annual rental income.

Daily maintenance of the house (maintenance fee) Investors need to reserve about 5% of the rental income as the maintenance fee of the house every year. For example, changing the lights in the room, painting the walls and so on.

According to British law, every landlord must have a safety certificate for installing and using water heaters, stoves, heaters and other facilities inside the house, and he must also check it once a year to ensure its safety. He must also provide comprehensive documents to the intermediary and tenant, and the cost is about 30- 150.

PS: In the process of buying a house, the seller should provide these safety certificates through a lawyer.

EPCs British law stipulates that all properties to be rented must provide energy consumption grade certificates to intermediaries and households according to law. The certificate will generally indicate the energy consumption level of the house and the room for improvement. From grade A to grade G, from the most environmentally friendly to the least environmentally friendly.

Other insurance Finally, if investors buy a house for rent, they can also buy rent protection insurance and dispute legal insurance, which is about 100- 150 pounds a year.