Tax Rates 2025/26 |
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Introduction
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Property taxesAnnual Tax on Enveloped Dwellings (ATED)ATED applies to ‘high value’ residential properties owned via a corporate structure, unless the property is used for a qualifying purpose. The tax applies to properties valued at more than £500,000.
Stamp Duty Land Tax (SDLT), Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT)
A surcharge applies for all three taxes where an additional residential property interest is purchased for more than £40,000 (unless replacing a main residence). It is also payable by all corporate purchasers. The rate is 5% (SDLT) and 8% (LBTT) of the total purchase price. LTT has specific higher rates in bandings: up to 180k: 5%, 180 - 250k: 8.5%, 250 - 400k: 10%, 400 - 750k: 12.5%, 750-1,500k: 15%, >1,500k: 17%. For SDLT: – First-time buyers purchasing a property of up to £500,000 pay a nil rate on the first £300,000 of the purchase price. – A 2% supplement applies where the property is bought by certain non-UK residents. – A rate of 17% may apply to the total purchase price, where the property is valued above £500,000 and purchased by a ‘non-natural person’ (e.g. a company). For LBTT, first-time buyer relief increases the nil rate band to £175,000.
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