Real Estate Investor Magazine South Africa Real Estate Investor Magazine - June 2017 | Page 54

UK PROPERTY TAXES
SERIES PART 1
Unpacking Tax on
English Residential
Property
BY RAYMOND HAYES
P
roperty taxes are unavoidable in most
jurisdictions, and England is no exception.
These taxes apply to anyone buying property:
regardless of domicile, you will be taxed no differently
than a local buyer.
The taxes to consider are: VAT, Council Tax,
Stamp Duty Land Tax, Annual Tax on Enveloped
Dwellings, Income Tax, Capital Gains Tax, and
Inheritance Tax.
In this article, we will deal with the first four.
1 Vat
Payable on legal services and estate agency fees, and
not recoverable ‒ it is an exception to the exemption
whereby non-EU citizens can obtain a refund. This
is whether you are buying individually or through a
company. The current rate is 20%.
2 Council Tax
Council Tax is local tax, payable by occupiers
depending on property value. This is unlikely
to affect any decision to invest as the tax is
comparatively low and, when property is let, it is
not the investor’s responsibility. If the prop