Rac­ing the tax­man

The Jewish Chronicle - - CLASSIFIED -

IF YOU are con­sid­er­ing buy­ing that Wall Hall apart­ment as a se­cond home, you would be wise to move fast. Af­ter April 1, you will be hit by a £438,000 tax bill. Agents re­port that in­vestors are es­pe­cially keen to make of­fers on prop­er­ties by mid-Fe­bru­ary, to beat the tax dead­line.

The stamp duty hike is part of a con­sul­ta­tion from the Trea­sury. You can ex­press your views un­til Fe­bru­ary 1 and the pol­icy will be out­lined in the Bud­get on March 16. The higher rates will ap­ply to ad­di­tional prop­er­ties pur­chased in Eng­land, Wales and North­ern Ire­land on or af­ter April 1, 2016.

The pro­posed charge ap­plies to the por­tion of the prop­erty value in each of five bands. A £3.5 mil­lion sale of this flat as a se­cond home at­tracts stamp duty of 3 per cent on the first £125,000 (a £3,750 tax bill); five per cent on the se­cond £125,000 (£6,250); eight on the next £675,000 (£54,000); 13 on the next £575,000 (£74,750) and a whop­ping 15 per cent on the rest, in this case £2 mil­lion (£300,000). The to­tal tax on Wall Hall is £438,750, an ex­tra 12.5 per cent on the ask­ing price. The ex­emp­tions pro­posed are if this is your only home, or if a com­pany buy­ing the prop­erty has more than 15 prop­er­ties.

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