Tax Calculation

In the UK property market, tax planning is just as crucial as choosing the right location. From Stamp Duty Land Tax (SDLT) at purchase, to Income Tax on rental income, and Capital Gains Tax (CGT) upon sale, each element directly impacts your return on investment and long-term wealth strategy.

For overseas investors, a lack of understanding of the UK tax system can lead to unexpected costs and legal or financial risks. Therefore, it’s essential to understand key tax regulations, including stamp duty calculation, and seek advice from professional consultants to ensure stable returns and optimal tax efficiency in your UK property investment.

Property-related tax

Buy

The buyer is responsible for paying a one-off Stamp Duty Land Tax (SDLT) on property purchases.
SDLT must be paid within 14 days of completion.
Staying in the UK for more than 183 days within a tax year qualifies you as a UK resident.
Non-UK residents pay an additional 2% SDLT surcharge.

Hold

Net rental income is subject to UK Income Tax.
For the 2025/26 tax year, the personal allowance is £12,570.
No personal allowance is available if annual income exceeds £125,140.

Sell

If your total income plus capital gains exceeds £50,270, you will be classified as a higher-rate taxpayer.
The annual Capital Gains Tax allowance is £3,000 per individual.
The sale of a primary residence is exempt from Capital Gains Tax under the Private Residence Relief