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Property Tax

Property Tax Services in Glasgow & Edinburgh

Whether you’re buying, selling or inheriting a property, you need to know that you’re going to come across the unavoidable task of correctly paying property tax.

The whole process can be confusing and often when people try to sort property tax out themselves, they run in to hurdles that are easily avoidable. Here at Tax Kings, our team can help you out with any property tax issues and help you avoid any possible problems you could run in to.

What is property tax?

Property tax, per se, isn’t one specific tax but rather a term used to group together a number off different taxes you may face at certain points of the property buying process.

What types of tax fall under Property Tax?

You will have heard of most of these before and be familiar with them, but different taxes that fall under this group include:

  • Stamp Duty (sometimes referred to as LBTT in Scotland)
    • This is the tax for when a property is transferred from one person to another. There are a number of rates depending on things like property type and where its located.
  • Income tax on your property
    • A tax based on the profits of your property; most commonly affecting landlords.
  • Capital Gains Tax (CGT)
    • First time buyers don’t need to worry, CGT is for people who have second homes, be it a permanent residence or a holiday home, and is a tax on the profit made from selling.
  • Annual tax on enveloped dwellings (ATED)
    • Companies that buy property worth over £500,000 are subject to ATED. It’s a relatively new tax and is progressively charged based on property value.
  • Inheritance Tax
    • Whether you’ve been gifted a property or had one passed down, inheritance tax will need to be paid.
  • Council Tax
    • The tax that get the bins collected and so much more, council tax is based solely on the value of your property when its private. If it’s commercial, then you have rates to consider too
  • VAT
    • You don’t generally have VAT when buying a property, but if you’ve been wanting an extension or loft conversion, there’s a high chance you may be subject to VAT

Helping First Time Buyers with Tax

It’s a complete eye opener when you’re buying a house for the first time and can feel like you have to jump through hoops just to get your hand on that key for the front door. If you want to take the hassle out of any issues relating to tax with your first home, get in touch and we’ll explain everything from Stamp Duty to Council Tax.

Helping property owners with Inheritance Tax

Inheriting a property can come with fees and charges that may not have been known from the person bequeathing the property to you. A person’s domicile status (that’s where they consider themselves to be permanently living) plays a big part, and there can be higher rates of taxation on properties if inheritors aren’t based here in the UK.

External factors too like money in the bank, existing investments and insurance pay-outs can all play a part in how much inheritance tax there is too.

(Inheritance tax rules in the UK are changing in 2020, so if you’d like to know more, get in touch)

Helping Landlords with Property Tax

If you’re a landlord it can be difficult trying to keep up to date with the taxes you have to pay. Even just figuring out income tax on your properties for the year can be tough. We can help make sure you pay the right amount of income tax and learn more about the process on our tax for landlords page.

Property Tax and Commercial Property

Things can get quite confusing when you own commercial property and have to pay tax. Factors like how ownership structure, what the property is used for and whether you use it or rent it out play part in the tax you need to pay.

We can help see if you’ve paid the right level of Stamp Duty, what the correct rate of VAT on a property should be and whether there are unrecognised factors which can help reduce the level of income tax on a property.

How much Property Tax will I pay?

There are a slew of variables involved when it comes to paying property tax.

To make sure you don’t overpay, pay the wrong kind of tax, or get hit by fines for not paying correctly, let the team at Tax Kings help.

We have experience for dealing with property tax issues all over the UK and help both private and commercial properties ensure they’re paying the right amount on their taxes.

You can get in touch today by using our contact form here on our homepage, or starting a chat with the chat button at the bottom right corner of this page.

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