Stop tax on the register: the turning point in the UK
Economic recovery also for real estate. This is the plan that the British government has in mind. To recover after this period of severe criticality, punctuated by two elements: Brexit and the Covid emergency. The London executive has in fact decided to totally eliminate a tax. The one on the register for the purchase of properties which, however, have a value below 500 milia pounds. Why does this initiative seem to be potentially successful for the London economy and in particular for its real estate?
To answer this question, we decided to create a short article about it. We will try to understand what the dynamics are related to this initiative, to understand what the implications could be. So if you are ready, we can start!
We assume that the effort endured by the British government is considerable. We are talking about an estimate of almost four billion pounds, which will weigh on the government's pockets until March 31 next year. In this way, an effort will be made to restore a climate of trust to allow all the actors involved in the buying and selling process to get back into the game. Remaining on the issue strictly linked to numbers, we recall that real estate sales collapsed during the lockdown period of 50% and moreover, prices also fell.
Collapse occurred for the first time after eight years. With this new measure adopted, the number of people who will not pay the tax until the previously indicated deadline is 9 out of 10. A significant percentage, which will probably increase the positive results of the English real estate. But let's go back to the register tax. Thanks to the limitation of this constraint, 4.500 pounds will be saved for each transaction in England. In detail, it will reach 15 thousand pounds for the capital, where, for obvious reasons, the prices are much higher.
How high is the register tax? This level is 2% compared to the value of the property which obviously has a price lower than the pre-established rents. The percentage of the tax rises, in proportion to 5% for properties with a value between 250 and 925 thousand pounds, up to a maximum ceiling of 10% for properties with a value equal to or greater than one million of pounds.
What industry experts think of this choice. Most of them are more than optimistic. It is a real push for the real estate sector and for the economy in general. And the results are already visible. Prices also dropped significantly, leading new potential investors to have an interest in one of the most fascinating and above all profitable real estate markets in the world. It is hoped that a positive change can be found in the coming months, encouraged by equally optimistic numbers. But, until then, we will continue to update you on our portal!
To answer this question, we decided to create a short article about it. We will try to understand what the dynamics are related to this initiative, to understand what the implications could be. So if you are ready, we can start!
We assume that the effort endured by the British government is considerable. We are talking about an estimate of almost four billion pounds, which will weigh on the government's pockets until March 31 next year. In this way, an effort will be made to restore a climate of trust to allow all the actors involved in the buying and selling process to get back into the game. Remaining on the issue strictly linked to numbers, we recall that real estate sales collapsed during the lockdown period of 50% and moreover, prices also fell.
Collapse occurred for the first time after eight years. With this new measure adopted, the number of people who will not pay the tax until the previously indicated deadline is 9 out of 10. A significant percentage, which will probably increase the positive results of the English real estate. But let's go back to the register tax. Thanks to the limitation of this constraint, 4.500 pounds will be saved for each transaction in England. In detail, it will reach 15 thousand pounds for the capital, where, for obvious reasons, the prices are much higher.
How high is the register tax? This level is 2% compared to the value of the property which obviously has a price lower than the pre-established rents. The percentage of the tax rises, in proportion to 5% for properties with a value between 250 and 925 thousand pounds, up to a maximum ceiling of 10% for properties with a value equal to or greater than one million of pounds.
What industry experts think of this choice. Most of them are more than optimistic. It is a real push for the real estate sector and for the economy in general. And the results are already visible. Prices also dropped significantly, leading new potential investors to have an interest in one of the most fascinating and above all profitable real estate markets in the world. It is hoped that a positive change can be found in the coming months, encouraged by equally optimistic numbers. But, until then, we will continue to update you on our portal!
