Property tax is a major headache when buying and selling a home, adding to the cost for the buyer, eating into the vendor’s profits, or both.
There are several types of property tax – including capital gains tax on any increase in value since you bought your home – but one of the main taxes encountered by many buyers is stamp duty.
Stamp duty is charged on all property sales of more than £125,000 – but just what percentage of transactions does that include?
Figures from the Bank of Scotland show that, across the UK as a whole, less than half of properties – just 45% – fall below the stamp duty threshold of £125,000.
This leaves the majority of all residential buyers with at least some property tax to pay.
However, this percentage is skewed by areas like Greater London, where 6% of all residential properties are sold for more than £500,000.
In the north-west, you are far less likely to have to pay stamp duty – in fact, 67% of transactions fall below the £125,000 threshold.
For more property tax advice, speak to our Manchester accountants, and find out what you will have to pay on your next transaction.