In a climate of falling house prices, paying unnecessary property tax can have an even greater impact on the final amount you receive when selling a home.
Figures from Acadametrics and LSL Property Services show the north-west and the north of England are currently experiencing “the most severe decline in prices” nationwide.
In the north-west, the average annual change in house prices stood at -3.5% in the three months to February 2012.
While this can leave many properties worth less than you paid for them, there are ways to maximise the amount you receive when moving house.
Property tax is one such area – not in terms of stamp duty, but in terms of capital gains tax.
If you sell your home for less than you paid for it, you’ve made no gains – so there should be no CGT to pay anyway.
Meanwhile, stamp duty is having a significant effect on activity among first-time buyers, as the current stamp duty ‘holiday’ comes to an end.
Richard Sexton, director of chartered surveyors e.surv, comments: “The looming stamp duty holiday deadline has injected real urgency into the first-time buyer market.”
For those with larger houses to sell, this suggests that there may soon be greater levels of activity further up the housing ladder as those first-time buyers’ funds filter up the chain.