Buying Property Either Side of UK Borders

Property Borderline Benefits On The Borders

Now that Scotland and Wales have their very own stamp duty taxes, buying property in the border areas between Wales and England, and Scotland and England, raises some interesting planning options.

Let’s look at Llanymynech. It’s a village that straddles the border between Powys (Wales) and Shropshire (England). The stamp duty payable on an identically priced house of £179,000, would cost the buyer £1,080 in Stamp Duty Land Tax if bought in the English side of the village, but no Land Transaction Tax would be payable for same priced house on the Welsh side of the village. A definite incentive to buy in this price bracket the Welsh side of the border.

A picture of a set of keys

Different countries means different taxes on property

Scotland, Wales and England Have Different Taxes

If you live in the Scotland/England border areas and are thinking about purchasing expensive property and your budget is £1m, you may want to consider the following numbers:

  • Buying in Scotland would cost you £78,350 in Land Transaction Tax, and
  • Buying in England would cost you a mere £43,750 in Stamp Duty Land Tax.

Scotland has also set its own Income Tax rates for 2018-19. Therefore, depending on the amount of your income, you may pay more or less income tax depending which side of the border you choose to live.

A picture of Tenby in Wales

Wales has different stamp duties to England

Different Countries, Different Taxes

You need to consider these border considerations as our regions gain more autonomy over their local taxes. They unfortunately add another raft of regulation that will have to be considered when planning on the situation of your residence (in border areas) for stamp duty and income tax in the years to come.

As experts in tax and wealth management, we can advise you on how to deal with things now. Call us for a chat. At the other end of the scale, if you wanted to talk to us about inheritance tax, just get in touch.