Discovering the U.K.

Page 33

Taxes

Council Tax

Council tax is locally set and payable on all residential properties. In most cases there is one

bill per property, regardless of whether it is rented or owned, and whether it is a house,

bungalow, flat, maisonette, mobile home, or houseboat.

Council tax is collected to help pay for local services such as police, fire, schools, roads,

libraries, and waste collection. However, it is not a direct payment for these services and is

payable regardless of whether they are actually used.

The amount payable depends upon the capital value of the property and will be obtained for

you once you have decided upon the property you wish to rent. Typically, the amount varies

per annum from around £1,000 to over £2,500 for larger properties. The amount is

calculated by the council and a bill is sent to you at the property. The bill can be paid by

direct debit in interest-free monthly instalments over 10 months. Your Consultant can advise

you further and assist you with setting up payments.

Stamp Duty Land Tax

Certain tenancy agreements can be taxable, and are payable by the tenant. If tax is due, it

must be paid within one month of the start of the tenancy to avoid paying a fine and interest

charges. Broadly speaking it is only those tenancies where the total rent for the tenancy is in

excess of approximately £120,000 that attract tax.

However, the rules and calculations are complex and are likely to be modified by the

Government or interpreted by case law as time goes on. You are most strongly advised to

seek legal advice through your company's HR and Legal Departments to determine whether

there is a liability in respect of your particular Tenancy Agreement.