Recently the British government put forward a bold idea!According to the British "Times" report, the British government plans to abolish the British inheritance tax before the next general election. This news is not a formal proposal at present. The purpose is to attract more support for the Conservative Party to win the next general election.
The spokesman of the British Prime Minister said: " The Prime Minister has repeatedly stated that he hopes to reduce taxes for people. ”
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In fact, there have always been many controversies over inheritance tax in the UK.The rise in house prices in the past decade has caused more and more ordinary families to pay inheritance tax, and the total amount of inheritance tax in the UK has also been rising. Last year it reached 71#{38 } billion pounds.
Many people believe this tax is unfair and inhumane to families.This also forces more people to take steps to avoid getting into trouble.At the same time, facing the deterioration of the British economic situation, the Conservative Party in power is currently facing many crises, with continuous general strikes.That leaves Sunak's government under pressure to deliver a welfare package ahead of the election to boost the Conservative Party's fading performance.
1: Inheritance tax (# {72}Inheritance Tax）
As the name suggests, inheritance tax refers to a tax levied on property donated to children (or others). Whether it is a down payment or a gift of a house, it will be involved.
Payment of inheritance tax If the property is in the name of an individual, the person who needs to pay inheritance tax is “The property owner”, and the heirs (such as children) are not direct payers of inheritance tax.Usually when the estate is distributed, the executor (Executor) declared in the will will file and pay taxes to the tax bureau.
Currently, the threshold for UK inheritance tax is 32.5 million pounds , the party concerned needs to pay tax at a tax rate of 40% for the portion of the total value of the estate that exceeds the tax exemption amount.
Those who currently meet the following conditions can apply for inheritance tax exemption#{ 43}
Legacy is lower than # {55}325,000 pounds.
The inheritance is higher than 325,000 pounds, but the inheritance is left to Spouses, legal partners, charities or community amateur sports clubs, etc.
If you leave the house where you live to your children (including adoption, Foster or stepchildren) or grandchildren can enjoy the residence exemption amount"".The inheritance tax threshold can be increased to £500,000.
If “Net worth#{96 }” If you leave 10% of or more to charity, you can enjoy#{ Estate tax relief from 105}10% to 36%.
So specific How to calculate how much inheritance tax you need to pay?
Example 1:
If your estate is worth 50 million, The tax-free threshold is £32.5 million.Then the inheritance tax levied will be 17.5 million pounds40% which means it needs to be paid# {22}7 million pounds.
Net asset value: £500 , 000
Assets exceeding inheritance tax threshold: £175#{46 }, 000
Inheritance tax rate: 40%#{ 57}
The inheritance tax paid is: £70, 000#{ 67}
Example 2:
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Your estate is worth 80 million pounds and the tax-free threshold is 32.5 million pounds.The inheritance tax levied will be 47.5 million pounds40% which means it needs to be paid#{ 100}19 million pounds.
Net asset value: £800 , 000
Assets exceeding inheritance tax threshold: £475#{124 }，000
Inheritance tax rate: # {6}40%
The inheritance tax paid is: £190, 000
So according to the current British inheritance tax standards Said, this is undoubtedly a large amount of tax.But if the British government implements the abolition of British inheritance tax, this huge cost will be saved.This is also very beneficial to our overseas buyers, and will also encourage more overseas buyers to purchase British properties.
Since the policy is beneficial to us, it is necessary for our overseas buyers to If you want to buy a house in the UK, you have to pay a lot of taxes.Lan Shajun will take you to continue to understand.
2: Stamp duty (SDLT, #{ 69}Stamp Duty Land Tax）
Proportion of buying a house The biggest one is stamp duty. Whether you are a British resident or an overseas person, you need to pay stamp duty to the tax bureau.
The current stamp duty threshold in England and Northern Ireland will be changed from the original 12.5 million pounds was raised to 25 million pounds.The threshold for first-time home buyers has been increased from £30 million to 42.5 million.
#{4 }At the same time, the price limit for the first home that can enjoy this reduction has also increased from the original 50 million to 62.5#{11 } million pounds
Of course, the British government stamp duty cuts. The policy is also introduced to support more first-time home buyers, so the higher the value of your property, the more money you will save. {26}
Three: Municipal property tax (# {37}Council Tax)
In addition, the taxes that must be paid include municipal property Tax, which is paid to the local government every year when buying a house in the UK, is used to support local public services. }
Generally, municipal property taxes account for 0.05% to #{61 }0.4%. Rental properties can be paid by the tenant, and residents who are students can apply for full exemption
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Four: Personal income tax (Income Tax)
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And everyone’s income from renting out real estate in the UK is subject to personal income tax (Income Tax)#{98 } , which means that regardless of whether the homeowner lives in the UK or not, he must actively declare to the government tax authorities every year and pay British personal income tax according to the specific income range
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If your permanent residence is not in the UK but you have UK rental income, you need to apply for an overseas landlord certificate and go to the UK National Tax Service Complete the application for the non-UK resident overseas landlord form on the bureau's website, and you can start renting after completing the application.
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Five: Capital Gains Tax (#{ 18}Capital Gains Tax）
Also in the UK, if you want to sell a property that has increased in value, you will need to pay capital gains tax (Capital Gains Tax) if you want to pay capital gains tax. Housing, and meeting the conditions"Private principal residence", when selling this property No capital gains tax is payable on the profits earned (CGT).
In summary, the above is all the tax issues that need to be paid when buying a house in the UK. It involves many complex tax issues. How to calculate the specific tax? The editor will give you a detailed explanation next
For example: How to accurately calculate the stamp tax that needs to be paid according to the new policy? And how to reduce taxes in a legal way under reasonable circumstances allowed by the law? How to apply for an overseas landlord certificate? So remember to pay attention to our official homepage. We will share the latest real estate information with you as soon as possible!
