Manchester property tax issues have been complicated in recent months by the city’s turbulent house prices.
In principle, property tax is often quite simple – if your home sells for more than the stamp duty threshold, you must pay it, while if you make a profit on the sale, you should usually also pay capital gains tax.
However, 2012 has seen the Manchester property tax landscape become much more complex than these fundamental rules.
In nine of the past 12 months – up until September 2012, when the latest Land Registry house price figures were published – the actual sale price of property in Manchester has dropped.
In August and September, prices went up by 1.1% and 0.4% respectively over the preceding months; however, the annual change remained negative at -2.2% in each month.
This leaves property owners in the unusual position of having a property that’s going up in value, but which may still be worth less than they initially paid for it.
If you’ve remortgaged in the interim, it’s even more complex, as you may be in profit over the full duration of your ownership of your home, but negative equity compared with the point at which you remortgaged.
Our property accountants are ready to help with any and all such issues as the turbulent housing market continues to find its feet once again – and all enquiries are welcome, whatever your situation.