About the UK

Living There 

A global village of many cultures, the United Kingdom houses a society that is tolerant and respectful of diverse and multicultural lifestyles. The capital city, London, offers fabulous opportunities for education, travel, and high standards of living which make living in the UK a unique and enriching experience. All parts of the United Kingdom have a temperate climate with plentiful rainfall all year round.

Economy 

The fifth largest economy in the world, it is also one of the most open economies of the western world. The current wave of globalisation coupled with political and social stability continues to ensure United Kingdom’s place as Europe’s leading business centre. Sectors such as manufacturing, tourism, and financial services contribute to the steady growth in the country’s economy.

Politics 

The United Kingdom is a constitutional monarchy, with executive power exercised on behalf of the monarch by the Prime Minister and other cabinet ministers. The Prime Minister appoints ministers to government posts, usually from senior members of his/her own party. Although the monarch’s role is mainly ceremonial, the popularity of the monarchy remains strong in the United Kingdom.

Buying Guide & Process 

A deposit of 10% of the property price is paid at the time of exchanging on freehold contracts which binds the buyer to completing the purchase. If unable to generate the 10% deposit, it is possible to use a ‘deposit guarantee scheme’. Completion of the purchase usually takes place about four weeks after exchange of contracts.
 
Please note that this information only applies to buying a house in England and Wales. The process is different in Scotland.

Investment Facts and Guide 

It’s boom time for the UK economy and people are adding to their bank accounts following continuous increases in property prices. Over 2006, the average price of a UK property rose in value by around 10%. City dwellers might focus on buying property in London where as the countryside lover could head for the Lake District, Scotland, Wales, or the West Country. With great times around the corner for the realty market, now is a great time to invest or freshen up your investment portfolio in the United Kingdom.

Price 

A semi-detached residence in the North would cost you an average of £149,306. The same home in the South East would cost an average of £256,650. City apartments will vary but in London start at around £310,127. The average UK house price is now around £230,474.

Rental Yields 

The average rental yield in the UK has been estimated at a little over 5%. If we look at London, yields in the central areas would vary between 4.5 to 5.4%. Property in up market areas of London such as Fulham, Richmond, and Wimbledon would yield rental returns of between 4.5 and 5.2%.

Rental Income Tax 

If you let out all or part of a property (including your home), the way you would be taxed on the rent will depend on the type of letting and individual corcumstances.
Capital Gains Tax 

For individuals, the chargeable gain is subjected to taper relief (a percentage reduction which varies depending on how long the asset was held prior to its disposal and whether the asset was a ‘business asset or a ‘non-business’ asset). Individuals are also entitled to a capital gains tax-free amount or ‘annual exemption’. For companies, the chargeable gain is calculated as proceeds less cost. Companies are entitled to an indexation allowance but are not entitled to any annual exemption.