Taxable Income
Commercial properties are subject to a range of taxes, the main ones being income tax and capital gains tax. In order to determine the amount of income tax payable, the taxable income from the property must first be calculated. This includes any rent received, as well as other income such as service charges and fees.
Capital Gains Tax
Capital gains tax is payable on any profit made when a commercial property is sold. The amount of tax due is determined by the rate of tax applicable to the seller. It is important to note that certain expenses such as legal fees and estate agent fees can be deducted from the sale price when calculating capital gains tax.
Stamp Duty
Stamp duty is payable on the purchase of commercial property. The amount of stamp duty payable is dependent on the value of the property and the rate of tax applicable. It is important to note that stamp duty is not applicable to properties which are leased for less than seven years.
