The present forecast for the high-value property market is that
it is set to slow down in the run up to next year's election.
The Labour and Liberal Democrats proposals, for an annual tax on
properties over £2 million (the so-called 'Mansion
Tax'), have been an exacerbating factor.
The proposals for a Mansion Tax follow two other taxes on
high-value property, introduced by the Treasury in the last two
years. In April 2013 an Annual Tax on Enveloped Dwellings (ATED)
was introduced. This annual tax is payable by companies on high
value residential property. Taxes are therefore already being paid
on company-owned properties worth over £2 million. The
Coalition government also introduced a new 7% Stamp Duty charge on
properties over £2 million.
