Types of property tax

[edit] England

[edit] Residential Property Taxes in England

[edit] On Purchase / Sale

• Stamp Duty Land Tax (SDLT).Payable on property purchases above thresholds, with higher rates for second homes and buy-to-lets.
• Capital Gains Tax (CGT). If selling a second home or investment property (main residences usually exempt).
• Inheritance Tax (IHT) . UK-wide tax when property is passed on at death (subject to exemptions).
• Corporation Tax on Chargeable Gains. If the property is owned through a company.
• Non-Resident Capital Gains Tax (NRCGT). If a non-UK resident disposes of UK residential property.

[edit] Ownership / Ongoing

• Council Tax. Payable by occupiers or owners, set by local authorities, based on valuation bands.
• Annual Tax on Enveloped Dwellings (ATED). Payable if a company owns UK residential property valued over £500,000.
• Income Tax on Rental Income. For individuals letting property.
• Corporation Tax on Rental Profits. For companies letting property.

[edit] Commercial Property Taxes in England

[edit] On Purchase / Sale

• Stamp Duty Land Tax (SDLT). Applies to purchases of commercial and mixed-use properties.
• Capital Gains Tax (CGT). If owned personally and sold for a gain.
• Corporation Tax on Chargeable Gains. If owned by a company.
• VAT. May apply on the sale or lease of commercial property, unless exempt or opted out.

[edit] Ownership / Ongoing

• Business Rates (Non-Domestic Rates). Local authority tax on occupation of commercial premises.
• Corporation Tax on Rental Profits. If property is let and owned by a company.
• Income Tax on Rental Income. If property is let and owned by an individual.
• Annual Tax on Enveloped Dwellings (ATED). Not usually relevant for commercial, but may apply if a commercial property is reclassified as residential within a corporate wrapper.

[edit] Scotland

[edit] Residential Property Taxes in Scotland

[edit] Purchase / Sale

• Land and Buildings Transaction Tax (LBTT). Paid on purchase of residential property above the tax-free threshold.Higher rates for additional dwellings (e.g. second homes, buy-to-lets).
• Additional Dwelling Supplement (ADS). A surcharge (currently 6%) on purchases of additional residential properties.
• Capital Gains Tax (CGT). Payable by individuals on gains when selling second homes or investment properties. Relief usually applies to your main residence.
• Corporation Tax on Chargeable Gains. If the property is held by a company.
• Inheritance Tax (IHT). UK-wide tax on property passed on after death (unless exempt).

[edit] Ownership / Ongoing

• Council Tax. Local authority tax based on property valuation band.
• Annual Tax on Enveloped Dwellings (ATED). UK-wide, payable if a company owns a UK residential property worth >£500,000.
• Income Tax on Rental Income. If renting out the property, profits are subject to income tax.
• Non-resident Capital Gains Tax (NRCGT). If a non-UK resident sells Scottish residential property.

[edit] Commercial Property Taxes in Scotland

[edit] Purchase / Sale

• Land and Buildings Transaction Tax (LBTT). Applies on purchase of non-residential (commercial) property.
• Capital Gains Tax (CGT). If owned personally and sold at a gain.
• Corporation Tax on Chargeable Gains. If owned by a company.
• VAT. May apply on sale or lease of commercial property, unless exempt or opted out.

[edit] Ownership / Ongoing

• Non-Domestic Rates (Business Rates). Local authority tax on occupation of commercial property. Reliefs available (e.g., Small Business Bonus Scheme).
• Corporation Tax / Income Tax on Rental Income. Rental income taxed depending on ownership structure (company vs individual).
• Annual Tax on Enveloped Dwellings (ATED). Usually applies to residential property in company ownership, but worth noting if classification changes.

[edit] Wales

[edit] Residential Property Taxes in Wales

[edit] Purchase / Sale

• Land Transaction Tax (LTT). Applies to property purchases in Wales (replaces SDLT). Higher Residential Rates apply for additional dwellings (second homes, buy-to-lets, holiday lets).
• Capital Gains Tax (CGT). Payable by individuals on gains from selling second homes or investment properties. Private Residence Relief usually exempts your main home.
• Corporation Tax on Chargeable Gains. If the property is owned through a company.
• Inheritance Tax (IHT). UK-wide tax on property passed on after death, subject to allowances and exemptions.

[edit] Ownership / Ongoing

• Council Tax. Levied by Welsh local authorities on residential properties, based on valuation bands. Premiums may be applied on long-term empty homes or second homes.
• Annual Tax on Enveloped Dwellings (ATED). UK-wide, applies if a company owns a UK residential property worth >£500,000.
• Income Tax on Rental Income. Rental profits taxed under the Welsh Income Tax system (a devolved element of UK income tax).
• Non-Resident Capital Gains Tax (NRCGT). If a non-UK resident sells Welsh residential property.

[edit] Commercial Property Taxes in Wales

[edit] Purchase / Sale

• Land Transaction Tax (LTT). Applies to commercial property purchases in Wales. Different (non-residential) bands from residential property.
• Capital Gains Tax (CGT). If owned personally and sold for a gain.
• Corporation Tax on Chargeable Gains. If owned via a company.
• VAT. May apply on the sale or lease of commercial property (unless exempt or opted out).

[edit] Ownership / Ongoing

• Non-Domestic Rates (Business Rates). Levied by Welsh local authorities on commercial premises. Reliefs available (e.g., Small Business Rates Relief).
• Corporation Tax / Income Tax on Rental Income. Taxed depending on ownership (company vs individual).
• Annual Tax on Enveloped Dwellings (ATED). Only relevant if a company owns high-value residential property; generally not for commercial.

[edit] Northern Ireland

[edit] Residential Property Taxes in Northern Ireland

[edit] Purchase / Sale.

• Stamp Duty Land Tax (SDLT). Applies to property purchases in Northern Ireland (same system as England). Higher rates apply for additional dwellings (e.g., second homes, buy-to-lets).
• Capital Gains Tax (CGT). Payable by individuals on gains from selling second homes or investment properties. Relief generally applies to your main residence.
• Corporation Tax on Chargeable Gains. If the property is owned by a company.
• Inheritance Tax (IHT). UK-wide tax on property passed on after death (subject to allowances and exemptions).

[edit] Ownership / Ongoing

• Domestic Rates (instead of Council Tax). Set by the Northern Ireland Executive + local councils. Based on the property’s capital value.
• Annual Tax on Enveloped Dwellings (ATED). UK-wide, applies if a company owns a UK residential property worth >£500,000.
• Income Tax on Rental Income. If renting out, profits are subject to income tax.
• Non-Resident Capital Gains Tax (NRCGT). If a non-UK resident sells residential property in Northern Ireland.

[edit] Commercial Property Taxes in Northern Ireland

[edit] Purchase / Sale

• Stamp Duty Land Tax (SDLT). Applies to purchases of commercial property.
• Capital Gains Tax (CGT). If owned personally and sold for a profit.
• Corporation Tax on Chargeable Gains. If owned by a company.
• VAT. May apply on the sale or lease of commercial property (unless exempt or opted out).

[edit] Ownership / Ongoing

• Non-Domestic Rates (Business Rates). Applied by Land & Property Services (LPS) on commercial properties. Reliefs may be available (e.g., small business rate relief, hardship relief).
• Corporation Tax / Income Tax on Rental Income. Taxed depending on ownership (company vs individual).
• Annual Tax on Enveloped Dwellings (ATED). Generally only relevant if a company owns high-value residential property (not standard for commercial).

[edit] Related articles on Designing Buildings.

• Business Asset Disposal Relief BADR.
• Business rates.
• Capital.
• Capital allowances.
• Capital gain.
• Capital gains tax.
• PAYE.
• Stamp duty.
• Taxes associated with selling a business.
• Tax relief.
• Typologies.
• VAT.