VAT on Buying property
If I buy a property worth £2m, do I have to pay VAT on it?
Asked on Mar 4 2013,
Home Finance in Birmingham |
Buying a property will not leave you needing to pay VAT but there is a charge that you have to look out for when it comes to purchasing homes and flats.
This is the government's stamp duty land tax, which was formerly known as simply just stamp duty. This is due on all purchases costing more than £125,000 in residential homes, although this rises to £150,000 in deprived areas.
To see the guidelines from the government, click the link below. As you will see, the percentage of stamp duty owed goes up on a sliding scale depending on what you paid for the property.
The cost for a home you buy for £2 million will be seven per cent of the final sale value, so if it was exactly on £2 million, you would need to pay £140,000 in stamp duty land tax.
Web reference: https://www.gov.uk/stamp-duty-land-tax-rates
Answered on Mar 18 2013,
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