Guide to London Property Taxes: What Buyers and Investors Should Know in 2025

Buying property in London is an exciting step, but understanding the tax implications is essential to avoid surprises and plan your finances effectively. This 2025 guide breaks down the key property taxes you need to know as a buyer or investor in London.

Stamp Duty Land Tax (SDLT)
Stamp duty is the most significant upfront tax for property buyers. As of 2025, thresholds have been adjusted slightly to support first-time buyers, but additional rates still apply for second homes and investment properties. Properties over £1.5 million attract the highest rates, while new exemptions may apply to eco-friendly homes.

Council Tax
Once you purchase a property, you’ll need to pay council tax based on the borough and property band. Rates vary significantly between boroughs—Kensington & Chelsea is among the highest, while outer boroughs like Croydon are more affordable.

Capital Gains Tax (CGT)
If you’re an investor selling a property that isn’t your primary residence, CGT applies to any profits. Rates depend on your income bracket, but exemptions and allowances may reduce your tax burden.

At TrustPoint, we help buyers and investors navigate London’s tax landscape with tailored advice and access to trusted legal and financial experts.