How do the tax implications (Income Tax, Capital Gains Tax, Stamp Duty Land Tax) of a typical UK buy-to-let property compare with dividend income and capital gains from a UK-focused ETF or investment trust, especially for higher-rate taxpayers?
Quick Answer
For higher-rate taxpayers, BTL property involves significant upfront SDLT and rental income taxed without mortgage interest deduction, while UK ETFs offer greater liquidity, dividend income taxed at 33.75%/39.35%, and capital gains subject to CGT at 24% after the £3,000 annual exemption.
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For higher-rate taxpayers, BTL property involves significant upfront SDLT and rental income taxed without mortgage interest deduction, while UK ETFs offer great
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