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Where Taxpayers and Advisers Meet

Taxes on Land w/wo Planning Permission

mdre2003
Posts:1
Joined:Wed Aug 06, 2008 3:04 pm

Postby mdre2003 » Sat Jul 05, 2003 12:25 pm

I'm from outside the UK and wish to purchase a small plot of agricultural land that does not have planning permission. Once the land is purchased what type of immediate taxes and annual taxes will I have to pay and what percentage (ie..10% or 20%)will be charged annually by the government.

accountant@uktaxshop
Posts:550
Joined:Wed Aug 06, 2008 3:04 pm

Postby accountant@uktaxshop » Sat Jul 05, 2003 1:17 pm

The tax (stamp duty) on buying land is at 1% of its value between £60,000 and £250,000 and exempt below £60,000. There are other rates above £250,000.

A solicitor would normally transact the stamp duty and other legal matters on your behalf at the time of purchase.

There are no annual taxes for ownership, however profits made from the land during ownership would usually be taxable.

Presumably you are looking to develop this land. It would therefore be very prudent to seek professional advice in the planning stage to ensure you structure the transaction to optimise your tax position. There are a number of ways to structure things especially given your non-resident status.

If you need to find a UK accountant and/or solicitor to act on your behalf please let me know.

James Smith
Chartered Accountant
www.uktaxshop.co.uk
01284 764436


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