Property Tax Question

I am seeing a stamp duty is paid upon purchase of a property, is this a one time only tax or are there annual taxes to be paid on property ownership like here in California?

I am seeing a stamp duty is paid upon purchase of a property, is this a one time only tax or are there annual taxes to be paid on property ownership like here in California?

Yes, stamp duty on buying a home.  https://www.gov.uk/buy-sell-your-home/tax

The annual property tax would be council tax.  It's dependent on the location and value of the property and paid to the local council.

It is *much cheaper here than in California. 

https://www.gov.uk/council-tax/working-out-your-council-tax

If you know where you will be  buying, you'll get more details on that local council website.

I am seeing a stamp duty is paid upon purchase of a property, is this a one time only tax or are there annual taxes to be paid on property ownership like here in California?

Stamp duty is paid by the purchaser at the time of the sale. It has to be paid upfront, the day you take ownership. If you use a solicitor (lawyer) then you usually transfer the money to them when you give them the deposit/purchase price. They then deal with it.
Our equivalent of property tax is council tax, which renters also typically pay. If you look at houses on real estate websites they often list the council tax band (A-G). You can then check the local council's website to see how much you would pay each year. This banding is also used to calculate your water bill.

Thank you guys this is really helpful. Most of the properties I am looking at seem to be in the class D range so only 1400ish pounds per year. That's amazingly low compared to my property taxes here in so cal :O, that stamp duty though. Ouch

Guess it depends what you're looking at - I own a 3-bed house and the stamp duty last year was only £560, but my council tax is around £1,000 per year.


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Just please be sure to sort a visa before purchasing a property!  I'd hate to see you spend a huge sum of money and not be able to enjoy your home.   

This banding is also used to calculate your water bill.

Unless you have a water meter.

Unless you have a water meter.

True!

Water is included in the council tax in Scotland, but I do remember when I lived in London we got a separate water bill.

Water is included in the council tax in Scotland, but I do remember when I lived in London we got a separate water bill.

I've lived in 4 different towns and cities in England, in 8 different properties and water has never been included in the council tax - I've always had to create an account with the water company and pay my water bills separate (I've also always had a water meter).

I've lived in 4 different towns and cities in England, in 8 different properties and water has never been included in the council tax - I've always had to create an account with the water company and pay my water bills separate (I've also always had a water meter).

Yeah, that's what I was saying.... in Scotland, you don't get a bill because it's part of your council tax.  In England, we had a Thames Water bill twice a year (although I don't remember ever seeing a water meter?).

Yeah, that's what I was saying.... in Scotland, you don't get a bill because it's part of your council tax.  In England, we had a Thames Water bill twice a year (although I don't remember ever seeing a water meter?).

A lot of places don't have water meters.  We had to request one be installed when we moved.  It would have been £770 a year for water and instead we are spending about £20 a month!

Yeah, that's what I was saying.... in Scotland, you don't get a bill because it's part of your council tax.  In England, we had a Thames Water bill twice a year (although I don't remember ever seeing a water meter?).

Yeah, I was just confirming that in England, it's unusual for water to be included - not just London, but elsewhere as well (I don't know if it differs between councils or if it's standard across England) .

Only commercial premises in the UK have a property tax, known as business rates. Residential property is subject to high levels of stamp duty on purchase plus ATED for enveloped property plus potentially capital gains tax and inheritance tax. Council tax is charged on the occupation of property, it is not a tax on the property; although it is banded based on a really rough estimate of the value of the property that is occupied.