#SDLT surcharge repayment

[top10estateagentsuk]

Apply for a Repayment of the Non-UK Resident Stamp Duty Land Tax Surcharge in England and Northern Ireland

Check if you can and how to apply for a repayment if you’re a non-residential purchaser of property in England and Northern Ireland.

Who Can Apply

You or your estate agents can apply for a repayment of the surcharge paid on a property if all the purchasers are individuals and have spent 183 days in the UK in any continuous 365-day period:

Starting no more than 364 days before the effective date of the transaction.

Ending no more than 365 days after the effective date of the transaction.

The effective date of the transaction is usually the completion date. You must apply for the repayment within 2 years of the effective date of the transaction.

What Information You’ll Need

To apply for a repayment, you will need the following details:

Bank Account Information: UK bank account and sort code details for the recipient of the payment.

Unique Transaction Reference Number (UTRN): From the Stamp Duty Land Tax return submitted when the property was purchased.

Effective Date of Purchase: Usually the completion date.

SDLT Amount Paid: Including the non-resident surcharge.

Purchase Price: If it’s a freehold property (or other ‘consideration’ if the transaction included goods, works, services, debt release, etc.).

Total Lease Premium: If it’s a leasehold property.

Net Present Value Calculation: Used when the SDLT was calculated if it’s a new lease.

If you’ve already reclaimed the higher rate on additional dwellings, you’ll need the amount of SDLT due after the refund. You may need to ask your solicitor or conveyancer for these details.

If You Are an Agent Acting for the Purchaser

Estate Agents will need a document signed by the purchaser confirming authority to apply for a repayment on their behalf. This letter of authority should specify if the repayment is to be paid into an account other than the purchaser’s and include the relevant account details. You’ll need to upload an image of this signed document with your online application.

How to Apply for a Repayment

Your application requests HMRC to amend the Stamp Duty Land Tax return for the property. You’ll be asked to certify that the amendment is correct.

There are two ways to apply depending on whether you have a Government Gateway user ID and password:

With Government Gateway: Use your user ID and password if you’ve registered for Self Assessment or filed a tax return online.

Without Government Gateway: Apply via email if you do not have a Government Gateway user ID.

Ensure to save your application and return to it later if needed. Only apply by email if you do not have a Government Gateway user ID.

Need Assistance?

If you find the application process challenging or prefer professional assistance, consider contacting the best estate agents in the UK. They can provide expert guidance and help streamline the application process.

[mollyharrisuniverse-blog]

Tax factors to consider when getting a buy-to-let-mortgage

Top 5 Tax Factors to Consider While Applying for A Buy-To-Let-Mortgage

Despite Brexit and the Pandemic hit loss, the UK is still encountering an all-time high inflation rate. With property prices rising, mortgage rates are too touching the sky.

When you buy a property aiming for investment, searching for quotes for a standard mortgage would not work in this case. Instead, you will need to explore the best buy-to-let mortgages.

Buying and investing in a property is still an attractive proposition for landlords visualizing long-term returns. Many young investors share a vested interest in it. Not only investors but online mortgage brokers in the UK are also exploring different ways to attract customers to a buying-to-let mortgage.

What Are Buy-To-Let Mortgages?

These mortgages are for those landlords looking forward to buying property at promising rates to rent it out. You may be interested and get a buy-to-let mortgage in the following cases:

1. You are willing to invest in new flats for rental purposes.

2. You are familiar with and willing to take real estate risks.

3. You are a homeowner with or without an outstanding mortgage.

4. Your earnings exceed £25000 a year. If you earn less than this, qualifying for the mortgage may become difficult

5. You should be below 75 years when the loan term ends. The mortgage loan term is 25 years.

If you are new to this and exploring quotes, use Lloyd’s bank mortgages calculator for first-time buyers.

It will help you understand the total funds you can borrow, interest rates and repayment terms as per affordability.

To get a mortgage on the investment property, borrowers have to pay at least 25% of the property’s value upfront as a deposit. The bigger the deposit, the better will be the interest rate. While assessing the borrower’s affordability, lenders analyse the previous history of buying-to-let properties.

What is Buying to Let Mortgage Rates 2022?

In April 2022, the rate of buy-to-let mortgages had an interest rate of 3.38%.

Apart from this, the Government introduced changes to residential property mortgages. Under this, individuals have to comply if:

1. A UK resident rents residential property in the country or overseas

2. Non-UK resident renting a property in the UK

3. Individuals renting residential properties in partnership

4. A trustee liable for income tax profits on residential properties Thus, residential landlords with finances are the most affected by these changes. Hence, online mortgage brokers and owners must be familiar with top tax factors while applying for a Buy-to-let mortgage.

Top Tax Parameters to Know Before Applying for Buy-To-Let Mortgage

Despite rising mortgage rates in the UK, there is an increased shortage of homes. If you are considering buying a property in the future or now, you must be familiar with some “buy-to-let mortgages” tax factors. Here are some taxes that you must be aware of:

1) Stamp Duty Land Tax (SDLT) - It is a tax that landlords must pay if buying a property or land in England and Northern Ireland. The tax differentiates in terms in cities like Scotland and Wales. The home buyer pays the SDLT, not the seller.

The Buy-to-let owner has to pay the tax to HMRC within 30 days of purchase. In addition to this, if purchasing a second property in England, there is an additional 3% surcharge that applies to the property price.

2) Capital Gains - If you are preparing to buy a property in the form of buy-to-let, you must be familiar with capital gains tax.

Under this, basic taxpayers will pay 18% of the gains they make by selling the property as rent. High-bracket taxpayers pay 28% capital gains on the property. As per the 2019-2020 statistics, you can make tax-free capital gains of up to £12000. Earlier it was £11,700. Couples owning the property jointly, combine the allowance and earn a whopping capital gain of £24,000.

It is possible that you can offset some costs when you buy a property and any charges associated with it. Are there any capital improvements that you would like to improve? List those too. However, you cannot deduct outgoings on the upkeep property and interest on the mortgage.

3) Income Tax - The income a landlord receives from rent is taxable. For this, the lender has to report it by filing a Self-Assessment Tax return. A landlord has to pay the tax according to the rental income. Some offset expenses include property repairs, maintenance costs, council tax, insurance premiums and agency fees. One can relish tax relief on mortgage interest costs and loans used to purchase property for investments. It is restricted to certain tax reliefs.

4) Annual Tax on Enveloped dwellings - It is a tax levied on the UK property owners for properties that are valued at over £500,000. It originated in 2013 at £2 million. The value at which this tax applies gets refused over subsequent that have considerably fallen under the bracket.

Entities liable for this includes firms with interest and partnerships with multiple companies. There are many benefits that landlords can exercise under this. It is especially true when the landlord rents out the property. He has to submit ATED (Annual Tax on Enveloped Dwellings) every year.

5) Inheritance tax - An inheritance tax is a tax imposed on an individual who has inherited the property after the father’s dismissal. The normal inheritance tax rate in the UK revolves around 40%. It is charged on the property valued above £3,50,000.

One does not have to pay the tax if the home value is below £3,50,000, you leave everything to your partner or civil partner, and you leave everything above the threshold to an exempt beneficiary. It may include charity or sports clubs. If you give your home to your children or grandchildren, your property threshold may increase to £5,00,000.

Bottom Line

Thus, property taxation is a complicated idea and requires detailed expertise. If you are a landlord looking forward to investing in Buy-to-let properties, these are some tax implications that you should be aware of. Check the eligibility and guidelines while filing for any tax here. It will help you get a better hold over things.

Source : https://mortgagebrokerinformation.weebly.com/blog/tax-factors-to-consider-when-getting-a-buy-to-let-mortgage

[mollyharrisuniverse-blog]

Tax factors to consider when getting a buy-to-let-mortgage

Top 5 Tax Factors to Consider While Applying for A Buy-To-Let-Mortgage

Despite Brexit and the Pandemic hit loss, the UK is still encountering an all-time high inflation rate. With property prices rising, mortgage rates are too touching the sky. When you buy a property aiming for investment, searching for quotes for a standard mortgage would not work in this case. Instead, you will need to explore the best buy-to-let mortgages. Buying and investing in a property is still an attractive proposition for landlords visualizing long-term returns. Many young investors share a vested interest in it. Not only investors but online mortgage brokers in the UK are also exploring different ways to attract customers to a buying-to-let mortgage.

What Are Buy-To-Let Mortgages? These mortgages are for those landlords looking forward to buying property at promising rates to rent it out. You may be interested and get a buy-to-let mortgage in the following cases: 1. You are willing to invest in new flats for rental purposes. 2. You are familiar with and willing to take real estate risks. 3. You are a homeowner with or without an outstanding mortgage. 4. Your earnings exceed £25000 a year. If you earn less than this, qualifying for the mortgage may become difficult 5. You should be below 75 years when the loan term ends. The mortgage loan term is 25 years. If you are new to this and exploring quotes, use Lloyd’s bank mortgages calculator for first-time buyers.

It will help you understand the total funds you can borrow, interest rates and repayment terms as per affordability. To get a mortgage on the investment property, borrowers have to pay at least 25% of the property’s value upfront as a deposit. The bigger the deposit, the better will be the interest rate. While assessing the borrower’s affordability, lenders analyse the previous history of buying-to-let properties.

What is Buying to Let Mortgage Rates 2022?

In April 2022, the rate of buy-to-let mortgages had an interest rate of 3.38%. Apart from this, the Government introduced changes to residential property mortgages. Under this, individuals have to comply if: 1. A UK resident rents residential property in the country or overseas 2. Non-UK resident renting a property in the UK 3. Individuals renting residential properties in partnership 4. A trustee liable for income tax profits on residential properties Thus,

Residential landlords with finances are the most affected by these changes. Hence, online mortgage brokers and owners must be familiar with top tax factors while applying for a Buy-to-let mortgage.

Top Tax Parameters to Know Before Applying for Buy-To-Let Mortgage

Despite rising mortgage rates in the UK, there is an increased shortage of homes. If you are considering buying a property in the future or now, you must be familiar with some “buy-to-let mortgages” tax factors.  Here are some taxes that you must be aware of: 1) Stamp Duty Land Tax (SDLT) It is a tax that landlords must pay if buying a property or land in England and Northern Ireland. The tax differentiates in terms in cities like Scotland and Wales. The home buyer pays the SDLT, not the seller.

The Buy-to-let owner has to pay the tax to HMRC within 30 days of purchase. In addition to this, if purchasing a second property in England, there is an additional 3% surcharge that applies to the property price. 2) Capital Gains  If you are preparing to buy a property in the form of buy-to-let, you must be familiar with capital gains tax.

Under this, basic taxpayers will pay 18% of the gains they make by selling the property as rent. High-bracket taxpayers pay 28% capital gains on the property. As per the 2019-2020 statistics, you can make tax-free capital gains of up to £12000. Earlier it was £11,700. Couples owning the property jointly, combine the allowance and earn a whopping capital gain of £24,000.

It is possible that you can offset some costs when you buy a property and any charges associated with it. Are there any capital improvements that you would like to improve? List those too. However, you cannot deduct outgoings on the upkeep property and interest on the mortgage. 3) Income Tax The income a landlord receives from rent is taxable. For this, the lender has to report it by filing a Self-Assessment Tax return. A landlord has to pay the tax according to the rental income. Some offset expenses include property repairs, maintenance costs, council tax, insurance premiums and agency fees. One can relish tax relief on mortgage interest costs and loans used to purchase property for investments. It is restricted to certain tax reliefs. 4) Annual Tax on Enveloped dwellings It is a tax levied on the UK property owners for properties that are valued at over £500,000. It originated in 2013 at £2 million. The value at which this tax applies gets refused over subsequent that have considerably fallen under the bracket.

Entities liable for this includes firms with interest and partnerships with multiple companies. There are many benefits that landlords can exercise under this. It is especially true when the landlord rents out the property. He has to submit ATED (Annual Tax on Enveloped Dwellings) every year. 5) Inheritance tax An inheritance tax is a tax imposed on an individual who has inherited the property after the father’s dismissal. The normal inheritance tax rate in the UK revolves around 40%. It is charged on the property valued above £3,50,000. One does not have to pay the tax if the home value is below £3,50,000, you leave everything to your partner or civil partner, and you leave everything above the threshold to an exempt beneficiary. It may include charity or sports clubs. If you give your home to your children or grandchildren, your property threshold may increase to £5,00,000.

Bottom Line

Thus, property taxation is a complicated idea and requires detailed expertise. If you are a landlord looking forward to investing in Buy-to-let properties, these are some tax implications that you should be aware of. Check the eligibility and guidelines while filing for any tax here. It will help you get a better hold over things. Description: Buy to let properties are a favorite buy among landlords. If you are confused regarding tax rules and factors, the blog will help.

Source : https://mortgagebrokerinformation.weebly.com/blog/tax-factors-to-consider-when-getting-a-buy-to-let-mortgage