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If you live in the UK and have rental income, you’ll usually have to pay tax on it.
You do this by filing a Self Assessment tax return – TaxScouts can help you do it 100% online.
How to calculate what you will pay tax on:
Here are the tax bands and tax rates in the UK – but be aware that from 2024, the UK government aims to reduce the basic rate to 19%:
|Up to £12,570||0%||Personal allowance|
|£12,571 to £50,270||20%||Basic rate|
|£50,271 to £150,000||40%||Higher rate|
|over £150,000||45%||Additional rate|
Then you can be eligible for the Rent-a-Room Scheme – probably the best tax-free allowance for landlords:
Then HMRC will ask you to treat it as a business:
You can claim pretty much everything related to running your property and being a good landlord:
There are also quite a few allowances you can use:
It’s a bit complicated, but yes:
Read more in our guide to paying rent from jointly owned properties.
Most of the time, you’ll pay tax on the rental income just as if it was based in the UK – read more on our guide to paying UK tax on foreign income here.
Yes, but you won’t have to pay them every year:
The Stamp Duty you pay is calculated based on the price of the property you’re buying.
In your case, £500,000.
As you’re a first-time buyer, you don’t pay Stamp Duty Land Tax on the first £300,000 of your purchase.
You pay 5% Stamp Duty on amount up to £500,000. For you, this is £10,000.
Your Stamp Duty Land Tax total is £10,000.
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