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February 5, 2013
London Prime Residential Property Taxes 2013
The current rates (which came into effect in 2012) of Stamp Duty Land Tax payable when UK property is purchased are as follows:
Current Stamp Duty Land Tax (SDLT) rates
Property Value SDLT rate
Up to £125,000 0
Over £125,000 to £250,000 1%
Over £250,000 to £500,000 3%
Over £500,000 to £1 million 4%
Over £1 million to £2 million 5%
Over £2 million 7%
Over £2 million (purchased by certain non-natural persons) 15%
Furthermore HMRC has introduced the following annual charges on properties valued above £2million, called the Annual Residential Property Tax. These are brought into effect by the Finance Bill 2013 and apply to residential property bought through a corporate vehicle.
Annual charges applying to property purchased by “non-natural persons” (Annual residential property tax)
Property value Annual charge
The following exclusions apply to the Annual Residential Property Tax and are not subject to the charge:
- Properties purchased and held for development purposes.
- Properties purchased and rented for income on a commercial basis.
- Properties used for business purpose and which are also open to the public for at least 28 days a year or used as a business venue.
- Properties used for commercial purposes
- Properties belonging to charities
- Company properties used for employee accommodation
- Farmhouses occupied by farmers
- Diplomatically owned properties.
- Publicly owned properties