Costs & Taxes
Capital Gains Tax (CGT)
Tax on profit when selling investment property
Full Definition
Capital Gains Tax applies to profits made when selling property that isn't your main residence. Rates are 18% for basic rate taxpayers and 24% for higher rate taxpayers (rates as of 2024). The annual allowance (£3,000 for 2024/25) can offset gains. Various reliefs may apply including Private Residence Relief if you've lived in the property.
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Stamp Duty Land Tax (SDLT)
Tax paid when purchasing property over £250,000
LBTT (Land and Buildings Transaction Tax)
Scottish equivalent of Stamp Duty
LTT (Land Transaction Tax)
Welsh equivalent of Stamp Duty
Section 24 (Mortgage Interest Relief)
Restriction on mortgage interest tax deductions for landlords
Limited Company Buy-to-Let
Purchasing properties through a company structure
Ground Rent
Annual payment to freeholder for leasehold properties