Tax assumptions: SDLT, Section 24 and CGT

Practical notes for using Koreograph to value, finance, track and compare property opportunities.

Koreograph includes UK property tax assumptions to make investment comparisons more realistic. These calculations are illustrative and should be checked with a qualified adviser.

SDLT

SDLT is modelled from the purchase price and the selected SDLT treatment, including residential, commercial and additional-property assumptions where relevant.

Section 24

For personally owned residential property, Section 24 can restrict finance cost relief. This can materially affect taxable profit and after-tax cashflow, especially for higher-rate taxpayers.

CGT and exit

Exit modelling can include selling costs, debt repayment and capital gains tax assumptions. Refurb cost may form part of the capital cost base in the model where appropriate.

Company vs personal ownership

Ownership assumptions affect tax, lending cover and retained profit. Use scenarios to compare personal and company ownership where the decision is material.