Property Tax Calculator UK
Our property tax calculator in the UK calculates your stamp duty land tax as well as council tax liabilities. It also shows potential property tax credits to empower you to make informed choices regarding your property purchase.
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Total purchase price£ 645,000£ 0 tax deductions for this purchase
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Tax to pay£ 40,828£ 39,100 stamp duty land tax£ 1,728 council tax (every year)
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Total price (inc. tax)£ 685,828
- You will need to pay your Council Tax every year.
Council Tax
Council tax is a tax you pay if you own a house in the UK. It's based on how much your house was worth in the past or when it was built. Even if your old house is now worth more, you might still pay less tax.
For instance, if your house in London is worth £350,000 today, you'd pay £1,728 in tax if it's in band H. But if it was valued at £80,000 in 1991, you'd pay £864 in tax in band D.
Remember, if you're renting a UK property, tenants usually pay council tax, but if it's a short-term rental like Airbnb, the landlord is responsible for the tax.
UK Property Tax
When you buy a house in the UK, you'll need to pay some taxes, those are Stamp Duty Land Tax and Council Tax.
But the good news is that if you're a first-time buyer or plan to live in the house, you may get some tax breaks.
Stamp Duty Land Tax
Stamp Duty Land Tax (SDLT) is a tax you have to pay when you buy a house in England and Northern Ireland. The amount of tax you pay depends on the type and price of the house. For houses where people live:
- If the house costs less than £255,000 ($310,000), you don't pay any tax.
- If it's between £250,001 and £925,000 ($1.12 million), you pay 5% in tax.
- For houses from £925,001 to £1.5 million ($1.82 million), the tax is 10%.
- If the house is more expensive than £1.5 million, you pay 12% tax.
For other types of properties:
- If it's not where people live and costs under £150,000 ($182,500), you don't pay tax.
- For properties priced between £150,001 and £250,000 ($304,000), you pay 2% tax.
- For properties more expensive than £250,001, you pay 12% tax.
If you already own a house somewhere else and buy one in the UK, you usually pay an extra 2% in tax unless the UK one becomes your main home on the same day. There are cases where you might pay less or no tax, like inheriting a house, buying a very cheap one (less than £40,000 or $48,680), or transferring a property during a divorce.
Property Tax Law in the UK
When you buy a house in the UK, you'll need to pay some taxes, those are Stamp Duty Land Tax and Council Tax as explained above.
Failure to pay property taxes, primarily Council Tax, can lead to a series of consequences. Initially, the local council sends reminders and warnings, providing opportunities to settle the overdue amounts.
If payments remain unpaid, a summons and court action may follow, potentially resulting in a Liability Order. Debt collection and enforcement agents can be engaged to recover the unpaid tax, with the authority to seize assets and charge additional fees.
In more severe cases, local authorities can apply to have outstanding tax deducted directly from earnings or benefits.
Frequently Asked Questions
