Property Details
Frequently Asked Questions
How is SDLT calculated on a property flip purchase?
SDLT (Stamp Duty Land Tax) for a residential property purchase in England (2026 rates): 0% on the first £125,000, 2% on £125,001–£250,000, 5% on £250,001–£925,000, 10% on £925,001–£1.5m, 12% above £1.5m. An additional 3% surcharge applies on second properties and investment purchases.
What CGT rate applies to a property flip in 2026?
From October 2024, Capital Gains Tax on residential property is 18% for basic-rate taxpayers and 24% for higher and additional-rate taxpayers. Note that if you flip properties regularly as a business, HMRC may classify the profits as trading income taxable at income tax rates (20%–45%) rather than CGT.
When does HMRC treat property flipping as a trade?
HMRC may treat property flipping as a trading activity — taxed as income rather than CGT — if you flip more than one property per year, if profit is your primary motive, or if you have a history of regular property buying and selling. This removes the CGT annual exempt amount and can significantly increase your tax bill.
What are typical bridging loan rates in 2026?
Bridging loan rates in 2026 typically range from 0.5% to 1.5% per month (6%–18% annualised). Most lenders charge arrangement fees of 1–2% and exit fees of 1%. Always factor in all fees when calculating your total finance costs for a flip project.
What costs can I deduct when calculating CGT on a property flip?
For CGT purposes you can deduct: the purchase price and SDLT, buying legal fees and survey costs, capital improvement costs (not repairs), selling agent fees, and selling legal fees. The CGT annual exempt amount for 2026/27 is £3,000.