Property taxes to be aware of in 2022

Posted on Friday, January 14, 2022


Property taxes to be aware of in 2022...


Clampdown on Capital Gains Tax

Capital gains tax for residential property transactions can now be paid within 60 days. Tim Walford-Fitzgerald, partner at UK accountancy firm HW Fisher believes that given the recent extension of the disposal reporting deadline to result in greater enforcement against those who have failed to meet their reporting deadline.


Property Developer Tax

In the October budget, Chancellor Rishi Sunak introduced that from 1st April 2022 developers will be charged a 4% tax on profits derived from accounting periods ending from this date on, for any residential property development activities which exceed £25m. This is expected to last for 10 years, and the hope is that it will raise £2bn for unsafe cladding to be removed from high-rise buildings.


Changes to Stamp Duty Land Tax

There has been a proposed change to stamp duty tax on the purchase of mixed-use properties. If you were to purchase a commercial unit with a residential flat above, you would only pay the commercial rate of SDLT. The proposal is that the cost should be apportioned so that only the shop unit benefits from the lower rate and the higher, residential rate is paid for the flat.


The reduced VAT rates for holiday lets has ended

The reduced rate of 5% was increased to 12.5% on 1st October 2021. It is important to note however that if a tax point has been created prior to this date, but the holiday takes place after, the 5% may still apply.