Scottish tax brings market in £1m homes to a standstill

mystic_trev

The number of homes worth more than £1 million changing hands in Scotland plunged by more than 90 per cent between April and June after the Holyrood government slapped higher property taxes on buyers of upmarket homes than their English counterparts.

There were only nine sales of £1 million-plus homes in Scotland in the second quarter of the year, down from 110 in the previous three months, according to figures from the estate agent Knight Frank.

http://www.thetimes.co.uk/tto/life/property/article4530241.ece

How's that going to bring in extra revenue?

Oh, its not supposed to....

Edward Douglas-Home, from Knight Frank in Edinburgh, said: “Any slowdown in the number of high value residential sales has the potential to have an impact on tax revenues.”

Thrugelmir

As with any tax that the rich wish to avoid. Simply choose somewhere else to spend the money.

mystic_trev

Unfortunately the SNP don't seem to understand the finer points of the Laffer curve

zagubov

mystic_trev wrote: »

http://www.thetimes.co.uk/tto/life/property/article4530241.ece

How's that going to bring in extra revenue?

Oh, its not supposed to....

Yep, nothing to do with people rushing to complete sales before the tax rise.:rotfl:

Anyway,this Registers of Scotland link
and this
Office of National Statistics link have plenty of food for thought.

Thrugelmir

mystic_trev wrote: »

Unfortunately the SNP don't seem to understand the finer points of the Laffer curve

People learn through making their own mistakes.

the_flying_pig

Dave's inheritance tax pwoperdee giveaway on big houses is worth more than this tax hike. That combined with the 'before' and 'after' samples both being based on a single quarter's worth of data makes me think 'non story'

mystic_trev

zagubov wrote: »

Yep, nothing to do with people rushing to complete sales before the tax rise.:rotfl:

I'm not so sure. I think they may have shot themselves in the foot by being too greedy.

In England, Wales and Northern Ireland, the equivalent stamp duty rate is 5 per cent on the proportion between £250,000 and £925,000, 10 per cent on homes worth between £925,001 and £1.5 million and then 12 per cent on the amount above that.

This means that a buyer of a £1.2 million property would pay £63,750 in stamp duty in England and £102,350 under the LBTT in Scotland.

Generali

zagubov wrote: »

Yep, nothing to do with people rushing to complete sales before the tax rise.:rotfl:

Anyway,this Registers of Scotland link
and this
Office of National Statistics link have plenty of food for thought.

I must be missing something. What do those pieces tell us about the Scottish housing market for expensive homes?

If prices are up 14% but high price homes are barely selling doesn't that imply a high rise in prices in middle priced homes?

DTDfanBoy

mystic_trev wrote: »

Unfortunately the SNP don't seem to understand the finer points [STRIKE]of the Laffer curve[/STRIKE]

Fixed that for you

beecher2

Generali wrote: »

I must be missing something. What do those pieces tell us about the Scottish housing market for expensive homes?

If prices are up 14% but high price homes are barely selling doesn't that imply a high rise in prices in middle priced homes?

http://www.heraldscotland.com/news/13611697.House_prices_rise_as_million_pound_property_sales_resume/

This article explains things a little bit better

Generali

beecher2 wrote: »

http://www.heraldscotland.com/news/13611697.House_prices_rise_as_million_pound_property_sales_resume/

This article explains things a little bit better

Thanks. It sounds like there's some way to go yet.

Six properties worth £1 million or more were sold in June, halfway towards last year's average of 12 a month.