Great Britain takes down tax threshold of residential property

20.03.2014

At 20 of March 2014, the Government of Great Britain make improvements in the Finance Act , which are extending the package of taxes to target UK residential properties held by companies and other non-natural persons

Under these amendments which were adopted, land tax at a rate of 15% will apply to purchases of property worth over GBP 500,000.

Previous threshold was chargeable from GBP 2,000 000.

Based on: (Chapter 2.Article 2.184 «Finance Act »)

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293759/37630_Budget_2014_Web_Accessible.pdf

Expert’s opinion

The decreasing of price cap for taxes of residential properties will influenced on small and medium business at reseller market.

English real estate market isn’t cheap, but estate agents are not ready to renounce from their profit. As usual ordinary consumer is suffering from alterations.

Besides, English and Scottish companies are always in-demand at the international market of tax planning, for financial operations and for protection of assets. 

Yaroslav Lomakin ( Managing partner of Honest & Bright” company)