Karelia Scott-Daniels, Director of Mayfair-based Property Acquisition Agents Manse & Garret Property Search commented "I don't see the increased £50,000 levy on long-term non-doms having a catastrophic effect on the prime central London property market. There was great consternation in many circles when the initial non-dom levy was introduced but people like London and will inevitably find a way to stay here because there aren't many alternatives which offer the buzz London provides. Certainly the tax havens can't compete. Many individuals will be able to use the increases to Entrepreneurs relief and the increasing threshold for Venture Capital Trusts and Enterprise Investment Schemes as part of their tax planning to make living in the UK more cost-effective. The reduction in corporation tax is also good news as are the reforms on taxation for multi-nationals whereby most overseas profits won't be taxable in the UK because both measures encourage businesses to stay or open an office in the UK. The market is still short on supply, certainly in central London and it is the supply and demand quotient which underpins house prices."

On stamp duty Karelia continued "The stamp duty loopholes are only really useful for very expensive property purchases and regardless of what the administrators of such schemes say, in my view employing such schemes waves a red flag to HMRC inviting them to consider the individuals other tax affairs." Karelia continued "It is surprising to see that stamp duty can now be based on the mean value not the whole on portfolios of property. This is a concession to institutional investors and overseas buyers, the latter who are already finding UK property cheap, given the weak pound versus many overseas currencies."

Commenting on the First Buy Scheme Karelia said "I have mixed views about the First Buy scheme. Obviously since it is part-funded by builders it is only designed to assist first-time who purchase new properties so to me it feels like a bit of a gimmick. New developments are sold with a developers premium and to my mind this encourages the mindset that everyone can afford a swanky home, which first time buyers often can't. Whatever happened to rolling up your sleeves and buying a cheap place needing work and negotiating a good discount? First time buyers need to increase their equity as much as they can and paying a developers premium is not the way to do it, even if they do get a loan to help them pay for it."

For further information please contact: Karelia Scott-Daniels hello@manseandgarret.com 07881 930000

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