Disputes about the “mansion tax” in the UK was reduced to finding out : “What is considered a mansion?”

Amid continuing controversy about the appropriateness of the introduction of a mansion tax in the UK, the company of elite real estate Knight Frank examined the two “Prime” area of real estate in Central London Westminster and Kensington and Chelsea, on the subject of what impact this mansion tax will have on these areas. These two areas comprise about 46% of all real estate more expensive than £2 million, is located in England and Wales .

First he criticised the fact that the mansion tax could have a disproportionate impact on London. The fact that 26% of all real estate more expensive than £2 million in England and Wales are flats in the centre of London (or rather just two parts) which do not fall under the input tax, because they are not separate real property, as provided for in the current wording of the bill. Thus, the basis of the attention of the legislators when writing the new law should be the definition of “taxable base”, namely, what kind of object should be taxed?

On the territory of greater London, the disparity is even more significant – 38% of residential property is more expensive than £2 million is flat, and only 14 % – detached houses. A large segment of the market – 36% of all residential real estate more expensive than £2 million pounds is the so – called Terraced houses, a small one-story (or storey) house for a few owners. The remaining part of the market, about 12 % – is a semi-detached house on two owners.

The figures show that there is a clear disparity in the understanding of what a “mansion” and the actual real estate market of London, which is only one-fourth part consists of detached houses, and three quarters of real estate another kind, “apartments”, “adjacent buildings” and “Terraced houses”.

Property in the UK is more expensive than £2 million and already subject to higher rate stamp duty is 7%., which was introduced in 2012 . For the tax period 2013-2014 residential property in London is more expensive than £2 million, brought into the Treasury of the United Kingdom over 81% of the total stamp duty collected in England Wales.

The continuing rise in property prices can lead to the fact that under the “mansion tax” will fall and property in London and the South of England, which cannot be attributed to the elite category , but it is expensive because of its location.

So, the price of property in Central London, which five years ago cost just over £1 million, is now approaching £2 million, as the increase in property prices in Central London has made over the five years, 85%.

Despite all the efforts of the labour party in the United Kingdom to impose additional taxes on residential property, residential property in the UK, thanks to the stable financial policy and the soft tax laws, remains one of the most attractive assets in the world, attracting annually hundreds of billions of pounds of investment funds.

® Helen Entree. On 06/10/2014

Luxury properties in Central London:

PARKSIDE, 28-56 KNIGHTSBRIDGE SW1X – £ 6,995,000

KENSINGTON SQUARE, KENSINGTON W8 – £ 7,000,000

TREVOR STREET, KNIGHTSBRIDGE SW7 £ 7,950,000

HENRY MOORE COURT, MANRESA ROAD, SW3 £ 12,000,000

SLOANE STREET, KNIGHTSBRIDGE SW1X – £ 12,950,000

QUEENSBERRY PLACE – £ 12.5 million

MONTPELIER SQUARE, KNIGHTSBRIDGE SW7 – £13.3 million

KNIGHTSBRIDGE SW1X – £19.5 million

Mansion on Mayfair £ 32,999,950

Luxury apartment – Hyde Park – £65 million