There are various forms of tax related to either buying or selling property. These include stamp duty, capital gains tax (a percentage of the selling price) and landlord tax.
Stamp duty tax is a percentage of the value of the property and which is calculated on a sliding scale. Buy to let and second home rates are calculated at three per cent for property valued to £125,000 and up to 13 per cent for a property costing up to £1.5m).
Capital gains tax is paid on the profit made by the sale of an investment property or second home. This is calculated on the basis of what you paid for it in the first place and money spent on renovations minus the sale price. The sum is then taxed at up to 28 per cent.
Landlord tax has recently been changed (ie the ability to claim landlord expenses back). It’s what the buy to let owner pays on the money received from the rental property.
