Vague question

[Karennina]

We’re not thinking of selling but Im curious to know  what this means if we did sell...
So say I paid £60,000 originally for my property, I have it valued by the valuation officer and he says it is now only worth £55,000 the seller has to pay the £5000 difference in tax?
Iv probably read it totally wrong am trying to make sense of it.

[1calis]

You would make a loss in that case so no tax would be paid.

[Fran]

How much is this tax, does anybody know.


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[Scunner]

4% sales tax as far as I recall (which is different to and unrelated to any capital gains tax on profit).

The 4% is based on the value of the property - previously the deed value (around 2p   ) and from Monday 4% of the independent valuation (a fair amount indeed).

[Scunner]

You would make a loss in that case so no tax would be paid.

Not correct - sales tax has nothing to do with personal profit or loss on the property, just the value at time of sale.

[Karennina]

Thank you Keith I think I understand it now after reading your post, so basically if my tapu said a lesser price then the market price at the time of sale, done by one of the valuation companies I would then have to pay 4% tax on the higher value price is this sort of the gist of the new tax rule? Many thanks   

[Scunner]

Yes Karen, the amount due will be 4% of their valuation. It is highly unlikely that the tapu value will be higher.

Actually, in the days where sales were booming, the sellers would insist the buyer paid the tax. It appears times have changed.

[1calis]

Scunner I thought she was talking about the profit on selling. If she is talking about sales tax then there is a slight reduction as the tax would be on a lower amount, but still payable.

[Karennina]

No “she” wasn’t talking about any possible profit made on selling “she was merely trying to make sense of this new rule as “she” is finding it hard to understand things as she heads into old or older age   

[Anne]

So, basically all of us who bought years ago with a different price on our tapu to which we actually paid will once again be shafted when we sell 😑