News

As we move from January into February the property market is maintaining its pace at both ends. The top end and first time buyers/buy to let’s going well. Mortgage approvals are also on the up slightly, which is even more encouraging and viewing levels being maintained. Hopefully we are seeing the start of some real movement.  We are still lagging the rest of the UK and unfortunately falling further behind, but any improvement is welcome. Please see the graph from the Office of National Statistics.

You can see in January 2014 Scotland just managed to get back above pre 2007 prices, but gradually fell back as the year progressed. Both the referendum and subsequently stamp duty to blame. Most thought the result of the referendum would be the end of the uncertainty, alas it seems to have been the start. Perhaps with the oil price falling through the floor and the decommissioning of fields being announced yesterday, reality may now strike home and allow markets to get back to some sort of normality. The initial signs are promising. Scotland is of course slightly distorted with Edinburgh and Aberdeen, but the overall trend is correct.

For our Non UK Resident sellers, Capital Gains Tax, does this apply to you?
You may be aware, it has been announced that from 6th April 2015 all UK non-residents disposing of UK residential property are required to pay Capital Gains Tax based on any profit realised.
 
Should you wish to sell a property after this date, you will need to prove to the Inland Revenue the value of the property (the base value) as of April 6th 2015, in order for the profit to be assessed and subsequently taxed at the prevailing rate of 18% to 28%, depending on your tax bracket.
 
It will be the responsibility of the seller to give evidence to the HMRC (UK tax authority) as to what the base value was at 6th April 2015. Backdating a valuation after this date could likely cause a problem and large cost for any property owner. If you require help with this please call our office and speak to Bill.