On a property costing 250,000 pounds, the standard SDLT at current rates would be 2,500 pounds. Add the 3 percent BTL surcharge and you pay an additional 7,500 pounds, bringing the total to 10,000 pounds. On a 350,000 pound property, the numbers are larger still. SDLT must be paid within 14 days of completion.
If you are buying through a limited company, SDLT still applies at the same rates including the surcharge. There is no exemption for company purchases, and HMRC has made clear that the surcharge cannot be avoided by structuring ownership through a company.
Capital Gains Tax is payable when you sell a rental property at a profit. The gain is calculated as the sale price minus your purchase price and allowable costs. Letting relief has been significantly reduced in recent years, so most landlords pay CGT on the full gain above the annual allowance. CGT rates on residential property are currently 18 percent for basic rate taxpayers and 24 percent for higher rate taxpayers.
