Many people will choose to buy a house in the UK, so what is the stamp duty in the UK? This is a problem that people who go abroad are more concerned about. Let's take a look at it with the real estate column! The following is an introduction of British stamp duty that I have compiled. Welcome to reading.

Introduction to British stamp duty

As long as you buy a house in the UK, you need to pay stamp duty land tax (SDLT). Stamp duty is paid by the British tax authorities (HMRC, her majestic's Revene &; Customs, Her Majesty's revenue and customs department, led by the British Treasury), usually, must be paid within 30 days after the completion of the real estate transaction. According to different types of real estate, stamp duty SDLT is divided into two types, namely, residential real estate stamp duty and commercial real estate stamp duty.

1. Stamp duty on residential real estate

Stamp duty on residential real estate is collected in a step-by-step manner with the property price of 40,000 pounds as the boundary. The Ministry of Finance has confirmed that from April 65, 438+0, 2006 to April 2065, 438, anyone who already owns a property (worldwide, so that the property he owns is not in the UK) will have to pay an additional 3% stamp duty when buying a property over 40,000 pounds, whether it is for self-occupation or house rental. If the transaction price is less than 40,000 pounds or the RV, houseboat or trailer, no additional stamp duty is required. In addition, if the buyer and the seller have exchanged contracts on 20 15, 165438 1 0.25, the transaction will be completed after 20 16,1year, which is not affected by the additional 3% tax rate.

For those who temporarily own two houses because of moving (the second house has been purchased but not sold in time), the time limit is extended from the original 18 months to 36 months. In other words, within three years from the purchase of the second property, as long as the original property can be sold, you can ask for a refund (not a direct exemption) of this part of the tax.

If the purchased property is used to "replace" his main residence, no matter how many properties the person owns, the purchase of the property used to "replace" his main residence does not need to bear the additional stamp duty rate (within 36 months). However, if someone already has a property for rent and then buys a property as their main residence, they need to bear additional stamp duty.

Property inherited recently (within 36 months) with no more than 50% ownership will not record a higher stamp duty rate.

Separated couples will be regarded as "independent entities", so the number of properties and stamp duty rate will be calculated separately.

Large people (such as those who buy properties above 15) also have to bear additional stamp duty.

Buyers only need to formally declare whether they hold additional properties when filling in the SDLT document.

2. Changes in stamp duty on commercial real estate

In view of the erosion of a series of new policies such as additional stamp duty and reduction of interest allowance for rental housing, some buyers choose commercial real estate or commercial and residential dual-use housing. Buying a second house or renting a house requires an additional 3% stamp duty. However, mixed commercial and residential properties are exempt from additional stamp duty.

However, the low stamp duty of commercial and residential mixed properties does not mean that commercial housing is superior to residential housing. For individuals, when buying commercial real estate, they must apply for a commercial mortgage loan, which has a higher interest rate than ordinary BTL loans.