Slim Posted February 22, 2005 Share Posted February 22, 2005 I read in the pink pages today that there's a bill coming through to tax profit from property. I gather from the information in the article that if you sell a property for a non-essential reason, within five years of purchasing it you will be taxed on any gains. Essential reasons were listed as needing more bedrooms and stuff like that. Sounds like something that could have a serious impact on the property market. Now, I welcome moves to make houses more affordable. But the flip side is the loss in value for people who've bought their houses in the peak. People offloading property before this bill comes into force could seriously weaken the market don't you think? Anyone found any further information? Link to comment Share on other sites More sharing options...
ykstarr Posted February 22, 2005 Share Posted February 22, 2005 don't have any further information, but weakening the market can only help me and my hubby be able to purchase a house! i agree that there should be a property developer's tax for those that own more than 3 properties on the island, doesn't sound like this is that kind of tax though.... Link to comment Share on other sites More sharing options...
Slim Posted February 22, 2005 Author Share Posted February 22, 2005 Thats the tricky thing though isn't it? Need to make property more affordable, but at the same time you stuff the people who've bought property while it was expensive. This will reduce the speculative developer, and the short term buy to letter. Wont matter a jot to the big boys if its just a five year limit. Link to comment Share on other sites More sharing options...
happy camper Posted February 22, 2005 Share Posted February 22, 2005 Sounds like it's capital gains tax on a worse scale than the UK. At least in the UK it's exempt on your home. If you can afford to, why shouldn't you move house on a whim? Link to comment Share on other sites More sharing options...
Slim Posted February 22, 2005 Author Share Posted February 22, 2005 I guess because it stuffs the market, as we've seen. The local property market isn't exactly healthy for new buyers is it? Link to comment Share on other sites More sharing options...
Addie Posted February 22, 2005 Share Posted February 22, 2005 This would be unfortunate if it was applied only by, say, a five year rule and non-essential reasons. This smells of big brother tactics and should be resisted by whatever means possible. Mr & Mrs Kelly wishing to change their 3 bed detached for a 3 bed semi aren't going to cripple the Manx housing market. Meanwhile companies building starter level homes that find their way into the coffers of other businesses or millionaires DO have an effect on the housing market - they've had an effect for years but only one politician seemed to notice! At the end of the day the developers or businesses would be able to (a)void with some creative accounting. Guess who may not be able to find all those naughty little tax loopholes though? Yes. The private purchasers. They could be left as the only ones paying the damned tax! Perhaps for starters, a primary personal residence should be exempt from this rule? Link to comment Share on other sites More sharing options...
RC-Drift.com Posted February 22, 2005 Share Posted February 22, 2005 don't have any further information, but weakening the market can only help me and my hubby be able to purchase a house! i agree that there should be a property developer's tax for those that own more than 3 properties on the island, doesn't sound like this is that kind of tax though.... <{POST_SNAPBACK}> make that 'more than 1 property' Link to comment Share on other sites More sharing options...
Slim Posted February 22, 2005 Author Share Posted February 22, 2005 I've not got any details, but agree that you want to avoid hitting people who are just upgrading and not doing developing for a living while catching the short term speculators that artificially inflate the prices. Need to have a scout about and see if I can find it... Link to comment Share on other sites More sharing options...
BigDave Posted February 22, 2005 Share Posted February 22, 2005 I can't imagine that they'd upset everyone by applying this to someone's main residence though. There would have to be sensible exclusions or they'd have a riot on their hands. Link to comment Share on other sites More sharing options...
ans Posted February 22, 2005 Share Posted February 22, 2005 Seeing as I *just* sold my house and hope to rebuy a new one later this year, this looks good to me! Link to comment Share on other sites More sharing options...
Speckled Frost Posted February 22, 2005 Share Posted February 22, 2005 In principle this is a great idea and I think the needs of those wanting to buy property outweighs those who could lose out slightly by selling up. I think this would only be a real problem if it caused a market collapse which resulted in widespread negative equity. Link to comment Share on other sites More sharing options...
kite Posted February 22, 2005 Share Posted February 22, 2005 maybe it will push prices up more as people factor in the tax they will have to pay onto their asking price? I dont see how you can tax people owning more than say 3 properties because of the way people use companies over here(and elsewhere). some people (accountants or lawyers etc) are directors and shareholders in hundreds of companies so how could you do it. Its annoying though reading things like this weeks propery where a firm in liverpool sold four strand st properties to a firm on ireland. Link to comment Share on other sites More sharing options...
happy camper Posted February 22, 2005 Share Posted February 22, 2005 I could see this stifling the housing market more as no-one could afford to upgrade. Link to comment Share on other sites More sharing options...
thebees Posted February 22, 2005 Share Posted February 22, 2005 I dont think Taxing these people is enough, they are all quite smart and 'company A' would sell it to 'Company B' and there would be a loss somewhere inbetween. A Properties, A farms, A holdings and blah blah blah. It dosent resolve the issue of willfull neglect. There is a house on the top corner of Woodbourne Road (the junction with Ballaquayle Rd) lovely house, loads of character, I dont think anyone lives there, I've seen a man cutting the hedge but there are never lights on and the back of the house looks as though it is about to fall off - such a shame, my dad said they had applied for PP to turn it into flats, the PP was denied so they will let the house get into a terrible state - then get their own way anyhow. The place where HH have just finished building (Mona Terrace) was a beautiful house - let to go to ruin so the developers could knock it down - this type of thing needs stopping - aside from anything else these buildings are dangerous. Wonder what they are going to do with the old Automobile Club on Hill Street? I'd love to see the place open again but I guess that isnt in the Daly fellas plans. Grr Grrr Grrr Tis a shame. I'd like to see house prices drop a little, perhpas then we could buy a bigger, fancier house for less than £850K. Link to comment Share on other sites More sharing options...
Slim Posted February 22, 2005 Author Share Posted February 22, 2005 Environmental Health dept can help out in cases of neglect. I've used them before, and it went very well. I don't quite see the logic that people needing to buy are somehow more important than people who've already bought. I wouldn't want to see a lot of hard stretched young couples who've just bought a house suddenly become bankrupt. It's apparently the Income Tax Ammendment Bill 2005, some details out of the pink one: Income Tax will Apply to profits on - individual disposal of land if the proerty was not the main residence for 18 months prior to the sale and was not owned by the individual for 5 years prior to the sale. - Persons disposing of land - fi the person was not involved in property development at any time during the last 7 years and the property was not owned by the person for five years prior to sale - any disposal of land - if the person was involved in property development at any tiome during the last seven years and the property was not owned by the person for seven years prior to the sale - individual disposal of land - i f the property was not the main residence for 18 months prior to the sale and there are no other means to meet day to day livign expenses other than the sale - The treasury can also impose tax under circumstances it deems necessary Confusing and cloudy if you ask me... Link to comment Share on other sites More sharing options...
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