Property tax was a major area of loss for the very wealthy in the 2012 Budget speech, despite many headlines focusing on the removal of the 50p rate of income tax.
On property tax, Chancellor of the Exchequer George Osborne introduced a 7% rate of stamp duty on properties worth over £2 million.
He also raised stamp duty on properties worth more than £2 million and bought through a company – this time to 15%, with immediate effect.
“If you buy a property in Britain that is used for residential purposes, then we will expect stamp duty to be paid,” he said.
However, our Manchester accountants can help you to understand the reliefs available to you elsewhere in the new Budget, in order to ensure you are not paying more tax than you need to.
For instance, if you are claiming more than £50,000 in tax relief in any one year, the Chancellor outlined plans to cap this at 25% of your income from next year.
With the widely reported drop in the top rate of tax – from 50p to 45p – there is some built-in relief, but ultimately the Chancellor expects to see taxes raised from the very wealthy rise by five times under the new regime.
If you are concerned about your exposure under the new Budget measures, our Manchester accountants may be able to help you balance your income and property portfolio to protect your wealth.