14 Apr

New tax could impact on buyers

New tax could impact on buyers

A new tax could hit those buying high-end properties, especially those in London, claims property company Zoopla.

Plans to introduce a mansion tax would mean a one per cent annual charge on properties worth more than £2 million.

However, it has been claimed this could impact significantly on those based in the capital city and the surrounding areas.

Research by Zoopla claims that London residents would pay more than £1 billion of the estimated total £1.2 billion revenue raised, potentially making it a "London tax".

Zoopla's Lawrence Hall explained that homeowners in London and the south east already pay a large share of property taxes because of the stamp duty threshold burdens.

He added: "Implementing an additional charge based on higher property values over an arbitrary threshold would only serve to further distort the market."

Outside London, properties in the nearby south east region would pay eight per cent or £94 million, while the rest of the UK would pay around £56 million.

Recently, chancellor George Osborne confirmed the government and regulators will monitor house prices closely, especially as prices in the capital continue to rise.ADNFCR-1222-ID-801712363-ADNFCR

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