HMRC UK Tax Calculators Helping You With Tax Calculations | Calculate Away

Many forms of HMRC taxation exist in the United Kingdom (UK).

Landlords and property investors ought to know that there is a personal income tax charge for properties owned in their name and a corporation tax charge for limited companies.

Stamp Duty Land Tax (SDLT) is charged by HMRC whenever you purchase a buy-to-let property. There is a banded rate of SDLT, and there are two Stamp Duty surcharges. The first Stamp Duty additional rate is the 3% rate, which is charged whenever you buy a second property in your name or any property within a limited company. There is also a 2% foreign Stamp Duty surcharge for non-tax residents that purchase residential properties in the UK. Use our UK residential Stamp Duty tax calculator to see how much you will need to pay. It helps you validate that what the conveyance solicitor is telling you is correct. We have also created a UK commercial property (non-residential) Stamp Duty tax calculator.

The UK rental income tax calculator helps landlords to understand how much UK tax HMRC will charge them on the buy-to-let rental profits. Section 24 means that mortgage interest cannot be 100% offset against your rental profits if they are owned in your name. This rental income tax calculator helps you to compare the tax difference between personal ownership Vs a limited company when purchasing residential property investments.

Landlords that use a limited company will be forgiven for thinking there is a fixed tax rate of 19%. Things have changed since April 2023, and there are two new rates that landlords need to be aware of. There is a marginal effective tax rate of 26.5% and a rate of 25% once the limited company profits exceed £250,000. Property investors can determine how much they will need to pay HMRC using the UK corporation tax calculator.

Landlords that purchase buy-to-let properties may choose to refurbish it. These refurbishment works allow landlords to charge more for the property's monthly rental. The refurbishment costs are categorised into two elements. The first refurbishment category is tax allowance costs. This means that these allowable refurbishment costs may act as a cost and be offset against your rental income. This means less profit will be made and less tax paid to HMRC. The second category relates to capital costs. These costs may help landlords to decrease the capital gains, which in turn means less UK CGT payable to HMRC. You can see how much cost you can use to reduce income tax or capital gains tax using our online UK allowable costs tax calculator.

Landlords wishing to dispose of a UK property must pay Capital Gains Tax (CGT) to HMRC within 60 days of disposal. The Capital Gains Tax liability is difficult to calculate given the various reliefs for Private Residence Relief, Annual CGT exemptions and loss relief for prior years. Using our online tax calculator, you can work out how much UK Capital Gains Tax you need to pay.

Inheritance Tax is a tax that HMRC applies when you die. You will leave assets to loved ones, but you will pay a 40% Inheritance tax once you go over your lifetime allowances. Your annual lifetime allowances may fall between £325,000 and £500,000, depending on your situation. Anything above the UK lifetime allowance is taxed at 40%. You can work out how much UK inheritance Tax you will pay using our online tax calculator.