Both levies are expected to net the government in 2005/06 a whopping 3.4bn. This is higher than revenues anticipated from Capital Gains Tax at 3bn and Petroleum Revenue Tax at 1.5bn.The UK’s biggest lender also reveals that one in three detached property sales are now above the present IHT threshold of 275,000. It adds the average price of a detached property is 270,107, only 2% below the IHT threshold. This comes as research from the UK Housing Review shows that home owners paid 6.5bn in Stamp Duty and Inheritance Tax last year, more than four times the amount they paid in 1997. Stamp Duty – at 5.5bn – accounts for most of the tax paid by home owners but Inheritance Tax bills on property rose to 1.1bn, compared with 480m in 1997. In the review, published jointly by the Council of Mortgage Lenders and the Chartered Institute of Housing, Professor Steve Wilcox from the Centre for Housing Policy at the University of York, analyses gross tax paid on residential property since 1991. He concludes that Stamp Duty and Inheritance Tax payments are growing faster than the amount the government would take if it levied Capital Gains Tax on housing wealth. Wilcox says that in the tax year prior to 2004/05, the most recent year for which Inland Revenue data is available, the amount paid by home owners in Stamp Duty and Inheritance Tax grew by almost 2bn. By contrast, the government’s decision to raise the Stamp Duty threshold from 60,000 to 120,000 before the last general election will reduce payments on residential property by only 250m. And even this sum is set to fall as the number of homes sold for under 120,000 declines. Peter Williams, deputy director-general of the CML, says: “We applaud the government’s election pledge to expand owner-occupation but the reality is that this goal is in danger of being thwarted by the growing cost and complexity of policy proposals and taxation measures.”
Intelligent Finance last week celebrated its fifth anniversary and the specialist lender continues to go from strength to strength.
The Saffron Walden Herts and Essex has launched a website to make its products and services even more accessible to its customers based all over the country as well those using its 12 branches in the East of England.The website was created after consultation with the members to see exactly what they wanted out of […]
Matthew Wyles, group development director at Portman says there is still oopportunities for Self Invested Pension Plan investors to buy into Real Estate Investment Trusts.He says: The chancellor appears to have cut away much of the much vaunted potential for direct investment via a SIPP into buy to let property. It never seemed very logical […]
As widely predicted the Bank of England today held the interest rate at 4.5%This is the fourth month in a row that the rate has remained unchanged. Rates were last cut in August, when they were reduced from 4.75% to 4.5%.
By Rob Burnett, head of European Equities at Neptune The ECB delivered a strong package in its latest policy announcement that managed to find the right balance between supporting the economy and not endangering the banking system. The EU banking system is very sensitive to negative rates and, if the ECB were to have cut […]
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