Accused variously of being a “snake” and a “betrayer”, Michael Gove has not always been popular with his ex-boss (Boris Johnson) or even the public. However, he has always been an effective enforcer and reformer. Only someone with the equanimity to respond to his sacking as Housing Minister (July 2022) with the response that he’s going to “Have a glass of wine and a slice of salami and see what tomorrow brings” could execute the plan to get rid of leasehold interests before the end of parliament. Continue reading →

Over the past few years, the UK government has been more focused on levying taxes on residential property. Although it adds to the complexity tied to the taxation system, the UK property market is lucrative and attracts optimistic overseas buyers in large numbers.

It is best to keep yourself abreast with all tax-related information if you are considering owning property in the UK. While solicitors should be the ones you turn to for finalisation, let’s take a quick look here at the taxes you need to be aware of.

What are the property-related taxes in the UK?

Property investment is a huge financial commitment. It is important to familiarise yourself with and keep in mind the taxes that are involved in the process.

• Stamp Duty Land Tax

SDLT is applicable for the purchase of property in England and Northern Ireland. The kind of property and its value determines the rate that would be applicable. The rate varies based on the various band values.

For first-time residential property buyers, tax is exempted till £425,000 (from the previous £300,000 as per the tax reduction update announced in September 2022). For other buyers, the no-tax threshold has increased to £250,000 (from the previous £125,000).

The tax band varies for owning property in Scotland and Wales. Self-builders are exempted from stamp duty on building costs but still have to pay duty for land.

SDLT is applicable on the sale and transfer of property.

• Income tax

Income tax is levied on income from a property. The relief limit is up to 20%, and landlords can deduct only actual incurred costs. Landlords can deduct the following costs before calculating the tax.
– Mortgage interest
– Insurance premium
– Council tax
– Maintenance and utility bills
– Agent

Non-resident landlords in the UK (who own property here but reside outside the country) can be individuals, companies or even trustees. In a partnership, each person becomes a separate landlord with respect to his or her share in the rental income.

• Capital Gains Tax

CGT is applicable on gains from selling or disposing of a property. Costs related to improvements and maintenance during the ownership of the property can be deducted before calculating CGT. This includes the cost of advice received, building extensions and garages, some taxes etc.

Essentially, the total gain is the difference between the sale value and the original purchase cost. And when selling a property, the sale value is usually the sale price.

• Annual tax on enveloped dwellings

ATED was initiated to discourage indirect property ownership, for example, via a company, to avoid taxes. If a company owns residential property valued £500,000 and more, it is required to pay ATED returns. The applicable amount is calculated on the basis of property value.

• Inheritance tax

IHT is levied on the property of a deceased person. It is applicable when the estate value is more than £325,000. It is not levied if assets beyond £325,000 are left to a spouse or charity. The standard IHT rate is 40% and is charged on the amount above the threshold.

Buying that perfect house may seem like a daunting task, as it may entail putting down all your savings on this one investment. Here at Glentree, we understand your basic requirements & needs, and these are the first of many steps. We are there to guide you through the rest of the steps.

Understanding the neighbourhood with its challenges and shortcomings, if any, is of utmost importance before you take the call to buy your dream home there. NW11 may check most of the boxes on your checklist with its serene and peaceful surroundings, coupled with ample transport connectivity and safety.

Top 3 Luxurious Properties for sale in NW11

If you are looking for a luxury space in the NW11 area, we recommend the following properties:

1. The Lexington, NW11

The Lexington promises all of London’s offerings at a convenient and distinctive location in North West London. It is a beautiful community of one, two, and three bedroom apartments and houses. Each unit has a private balcony and a very secure underground parking facility.

While high-end and necessary kitchen appliances accentuate the grandeur and majestic interiors, the outdoors is adorned by landscaped gardens and a private gym for residents.

Have a look at the price range of properties for sale in NW11 here.

2.  West Heath Place, NW11

This two-bedroom luxury apartment is for sale at West Heath Place. It’s the perfect home for those looking for minimalist and modern chic. It is on the border of Hampstead and Golders Green, located on the corner of Finchley and Hodford roads. True to its promise of luxury, the apartment has a large living room, open kitchen, two bedrooms, a private balcony, and underground parking.

With 24-hour security and an onsite gym for residents of the community, it is conveniently located close to fashionable shopping centres and tube stations for easy commuting.

A must-view, you can have a look at the price range here.

3.  Belview Lodge, NW11.

This contemporary three-bedroom apartment is located in the Grove, within walking distance from Golders Green and Brent Cross stations and local amenities. The stunning 1470 sq ft apartment is part of a newly developed boutique community of just nine apartments.

It boasts of three bedrooms of generous sizes, a separate kitchen, and a big reception area. The communal gardens can be directly accessed via two private terraces. In addition to a private outdoor space and secure underground parking space for two cars, the high specification furnishing includes storage cupboards.

In close proximity to Temple Fortune, Hendon and Hampstead Garden Suburb, with multiple retail and leisure options, this property is highly recommended. To know the price range of this high-end apartment for sale in NW11, click here.