Investment Process
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•A copy of your passport, proof of residence, a utility bill from the last 3 months, and a bank statement (showing the source of funds) are prepared
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•The "Client Care Letter" is digitally signed, confirming terms and responsibilities
•An advance retainer secures the solicitor and starts the transaction
•The solicitor reviews funds for AML compliance and legitimacy
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•The sourcing fee is paid to the firm securing the property, included in the total cost
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•The solicitor conducts identity verification via a Zoom video call
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•After completing the review, the solicitor provides a detailed breakdown of the property price, taxes, and other expenses. The final payment is made accordingly
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•Contracts are signed after all payments are completed
•The purchase process is officially completed, and the keys are handed over
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•A Schedule of Works is created based on the property's condition and the refurbishment plan
•Optimized design, modernization, and energy efficiency improvements are implemented to enhance property value
•Completion takes an average of 8-16 weeks, with the property delivered turnkey
UK Tax Practices for Real Estate Investment
Personal Income Tax in the UK
•Income up to £12,570 is exempt from income tax
•Income between £12,571 and £50,270 is taxed at 20%
•Income between £50,271 and £125,140 is taxed at 40%
•Income over £125,140 is taxed at 45%
Corporation Tax in the UK
•Small businesses with an annual income under £50,000, the Corporation Tax rate is 19%
•The main Corporation Tax rate for businesses with annual profits over £250,000 is 25%
•When profit is distributed from a company, the £12,570 exemption applies for each employee. After that, profit distributions up to £37,500 are subject to a 7.5% tax rate
Stamp Duty
•It is the tax paid during buying and selling transactions
•7% on the portion of the sale price up to £250,000
•12% on the portion of the sale price between £250,000 and £925,000
•17% on the portion of the sale price between£925,000 and £1,500,000
•19% on the portion of the sale price over £1,500,000