Buying a property in Wilmslow is a big step, and it’s easy to overlook the different costs involved, especially when property taxes are so high.

At Gifford Cairns, our conveyancing fees are clear and competitive. But taxes like Stamp Duty Land Tax (SDLT), Capital Gains Tax (CGT), and VAT can be confusing for many buyers and can be a block to a property purchase.

Here’s a simple guide to the main property taxes, so you can make smart decisions when buying or selling property in Cheshire.

SDLT

In England, Stamp Duty Land Tax (SDLT) is payable on the purchase of freehold or leasehold property or land above certain thresholds. Given property values in Wilmslow and the surrounding areas, SDLT is a common consideration for our clients.

SDLT Thresholds

• Over £125,000 for residential properties.
• £300,001 for first-time buyers of residential properties buying a home worth £500,000 or less.
• £150,000 for non-residential land and properties, such as woodlands, shops or farms.

Who Pays SDLT and When?

The purchaser is responsible for paying SDLT, and it must be paid—along with submitting the SDLT return to HMRC—within 14 days of completion. As your conveyancing solicitors, we ensure this process is handled smoothly for you.

Can I Be Exempt from SDLT?

Yes, you do not need to pay SDLT or file a return if:

• No money changes hands and it is a simple property transfer.
• The property is left to you in a will.
• The property is transferred to you because of divorce proceedings.
• You buy freehold property below £40,000.
• You buy a new or assigned lease of 7 years or more, if the premium is less than £40,000.

Capital Gains Tax (CGT)

You may have to pay Capital Gains Tax (CGT) if you sell a property that isn’t your main home. The amount depends on your income and how much profit you make from the sale.

Higher/Additional Rate Taxpayers CGT Rates

24% on gains from residential property and on your gains from other chargeable assets.

Basic Rate Taxpayers CGT Rates

18% on gains from residential property and on your gains from other chargeable assets.

Are There Exemptions from CGT?

Most people won’t pay CGT when they sell their main home, thanks to Private Residence Relief. You qualify if:

1. Your only home or main home during ownership.
2. You did not rent any part of it out.
3. You have not dedicated any area for business.
4. Grounds less than 5,000 square metres.
5. You did not buy it to make a gain.

Businesses may qualify for Business Asset Disposal Relief, which reduces the CGT rate to 14% on the sale of all or part of the business. You are eligible if:

1. You are a sole trader
2. You are a business partner.
3. You have owned the business for at least 2 years.
4. For selling shares, you must be an employee or office holder of the company.

VAT

VAT (20%) usually doesn’t apply to property sales, but there are a few important exceptions:

1. VAT is chargeable on the sale of commercial properties completed within 3 years.
2. The sale of new-build residential property is ‘zero-rated,’ meaning the buyer does not pay VAT, but the seller can recover VAT.

Why Would a Commercial Landowner Choose to Charge VAT?

Commercial landowners may opt to charge VAT to recover VAT paid on purchases or renovations. As a commercial buyer, this allows you to:

1. Charge VAT on rent, after renting out the building.
2. Charge VAT on the eventual sale of the building if it is more than 3 years old.

Why Gifford Cairns?

Dealing with property taxes does not have to be overwhelming. If you have questions about SDLT, CGT, VAT, or any part of buying or selling property in Cheshire, our friendly team at Gifford Cairns is here to help.

Contact us today and let us help make your property journey a success.