Property tax can be difficult enough to work out at the best of times, but the economic turbulence of the past few years has made it an even more complex area.
The latest Land Registry figures show house prices down by 1.3% between December 2010 and December 2011.
However, they didn’t change between November and December of 2011, staying around the £160,000 mark on average in England and Wales.
For anyone looking to move, it’s a confusing time – do you need to pay property tax if your current house is in negative equity, or has dropped in value while you’ve owned it outright?
The answer to that question probably depends on your unique circumstances, but it’s worth checking carefully into property tax before completing your next move.
In a recent speech to the Resolution Foundation, Liberal Democrat leader Nick Clegg listed property tax – particularly on high-value homes – as a particular area of focus for the government in the months to come.
Speaking of tax-avoidance areas where the government needs to “be tough”, he listed “stamp duty avoidance – particularly on higher-end property sales – and the transferring of assets and income abroad”.
When you next look to move house, speak to us about property tax, and we can help you to make sure you don’t take any steps that could seem like unlawful avoidance.