Publicity } word from the street
Thirteeen may be a superstitious number for some, but the prospects for 2013 look good in the Prime Central London residential market.
The last six months of 2012 were largely 'on hold' as we awaited the Government's decision on how to tax those properties held in company names with a value of over £2 million. The December 2012 announcement has resolved that uncertainty although with annual charges commencing at £15,000 per annum for properties at over £2 million and topping out at £140,000 per annum when the property value exceeds £20 million. As a result, and indeed since April 2012 very few properties have been purchased in company names. There has been an increased focus from investors upon smaller properties as those who may have bought a house for say £4 to £6 million will now contemplate purchasing two to three flats for children studying or working in London.
In addition to arranging such sales, AMES has been busy preparing valuations for those who have held their London property in the name of an offshore company and now seek advice whether to "sell" or transfer to a family member. Specialist trusts remain an option to take over from the previous company situation.
The prospects for 2013 thus look good for the residential property buyer who has sensibly chosen the London market which has already grown circa 40% in value since 2008. The rate of growth may be slowing but the demand is still rock solid.