1.  Due diligence costs for the purchase of real estate
    1. Municipal search
    2. Cost
    3. VAT
    4. Utility search (each service)
    5. Cost
    6. VAT
    7. Land registry search (per search)
    8. VAT
    9.  Company search, per company
    10. VAT
    11.  Survey/Valuation fee, approx
    12. VAT
    13.  Phase 1 Environmental survey
    14. VAT
  2. Costs associated with a contract for purchase of real estate and registering title
    1.  VAT on price
    2. Cost
    3. VAT
    4.  Transfer duty
  3. Tax or duty on the acquisition of shares in a company owning real estate
  4.  Capital gain taxation on future disposal of real estate or shares in a company owning real estate
    1.  Tax on capital gains on the disposal of the real estate itself
    2.  Tax on capital gains on the disposal of shares in a company owning real estate

jurisdiction

England and Wales

1. Due diligence costs for the purchase of real estate

Cost

GBP 450-GBP 1000

VAT

20%

1.2 Utility search (each service)

Cost

GBP 1,300–GBP 2,500

VAT

20%

VAT

Nil

1.4 Company search, per company

VAT

Nil

1.5 Survey/Valuation fee, approx

VAT

20%

1.6 Phase 1 Environmental survey

VAT

20%

2. Costs associated with a contract for purchase of real estate and registering title

2.1 VAT on price

Cost

Currently three bands with a top rate of 5% of consideration (including VAT) in excess of GPB 250,000 for commercial property. Maximum rate on expensive residential property is 12% with rates arranged into bands dependent on property value or 15% if the buyer is corporate and the value of the property is over GBP 500,000. A surcharge of 3% can apply if a purchaser owns multiple residential properties and a further 2% surcharge may apply where a purchaser is not UK resident. There is a separate tax on land transactions in Wales, for which the top rate for commercial property is 6%. The top rates for residential property are 12% or up to 16% where the purchaser owns multiple properties

VAT

20%

2.2 Transfer duty

3. Tax or duty on the acquisition of shares in a company owning real estate

0.5%

4. Capital gain taxation on future disposal of real estate or shares in a company owning real estate

4.1 Tax on capital gains on the disposal of the real estate itself

Both UK and non-UK residents are within the scope of UK tax on capital gains.
Sale by a company: corporation tax of up to 19%.
Sale by an individual: capital gains tax of 18% or 28% for residential property and 10% or 20% for non-residential property.

4.2 Tax on capital gains on the disposal of shares in a company owning real estate

Sale by a company: corporation tax of up to 19%.
Sale by an individual: capital gains tax of 10% or 20%.