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Will There Be A Taxing Situation?

Posted on Friday, November 21, 2014

As you're no doubt aware the idea of the "mansion tax" has been proposed again and is being kicked about in the news, and is bound to become a political football in the run up to the General Election. If it comes into being the levy would essentially mean that owners of properties worth more than £2m would face an annual charge. More worryingly it would also mean successive Chancellors would be able to lower the threshold at which the tax applies without recourse to the electorate or Parliament! 

Hometrack - which values properties for banks, builders and provides analysis for estate agents - says there are about 58,500 homes with a value in excess of £2m across Britain. Estate agent Savills estimates that there are about 97,000 properties in the UK, while Zoopla puts the number at about 108,000, and estate agent Knight Frank puts the total around 110,000. All agreed though that the vast majority of these - well over 80% - would be in London and the South East.

The precise details on how this tax would work and how much it would raise aren't clear at present - and it is always worth waiting to see what they actually are - but Kerr & Co. don't think it is something to fear and that it will be significantly lower than is thought, it is a 'vote hot potato' after all. However, the effect of this possibility is that people are already considering selling their property before the election. 

With respect to selling, and possibly downsizing, an unrelated fact is that many older people are now 'slimming down', for a whole variety of reasons; space that is no longer needed, to release some equity for them to enjoy, to free up a chunk of money for their children in order to help them buy their own property, or for their education - or for 'other'! 

Can Kerr & Co. help you with this? You bet your equity we can! When contemplating this type of move it is shrewd to get a good independent agent to help you make an informed decision, and we can certainly do this and guide you to achieve the best, and most practical, outcome; managing the move, or downsize, and the chain all the way through from start to finish - the perfect agent. 

The best way to begin is to simply pop in for an informal chat, we have built a reputation for reliability and to always act in the customer's best interests, and we will help your make an educated choice and the right one for you and your family.