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What is stamp duty?

Stamp Duty Land Tax (SDLT) is an obligatory amount payable to HM Revenue & Customs upon the purchase of property or land in the UK. HM Treasury has recently changed how this tax is calculated, with a higher rate payable if the property is not purchased as your only residential property.

When investing with UOWN, SDLT is classed as an initial purchase cost and is therefore included in the share price you pay. Other similar costs include legal and professional costs, repairs provision and pre-let expenses. So these are all taken care of when you buy shares.

Ongoing costs are different in that they are deducted from the monthly rent you receive to make nett rent, and these include a management fee, insurance, maintenance, SPV charge, vacant property allowance and corporation tax.

Wherever possible UOWN will try and minimise the amount of SDLT payable. The SDLT rates for properties purchased by UOWN are listed below.

  • Up to £125,000 = 3%
  • The next £125,000 (the portion from £125,001 to £250,000) = 5%
  • The next £675,000 (the portion from £250,001 to £925,000) = 8%
  • The next £575,000 (the portion from £925,001 to £1.5 million) = 13%
  • The remaining amount (the portion above £1.5 million) = 15%
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