Martin & Mortimer

So it’s been a long and for many financially tight year and any spare money has now been well and truly spent on Christmas festivities (and given all that has happened over the last 12 monthe rightly so). If you are anything like me you are probably wondering how big that credit card bill will be when it drops through the door in January and where you might make some savings.

Despite historically low interest rates, inflation is beginning to rise and the cost of living is predicted to increase in the next few months. On top of this, it is likely that there will be a rise in council tax generally.

Council tax was introduced in 1993 (replacing the ever-so popular Poll Tax) based on 1991 property values. It is a residential property tax and places each property in England into one of 8 bands (A-H). Originally, there was to be a re-assessment of the bands every 5 years but this never happened. This does not however mean that you can not look at your council tax band and appeal it if you feel it is too high. Many people don’t bother as the tax is established and largely accepted. After all is it really going to make much difference?

There are specific limitations set down as to when, who and on what grounds the banding can be appealed but, to my mind, these are rather irrelevant as the listing officer has a duty to maintain an accurate list.

If the banding is reduced you may be in line for a rebate of all monies overpaid by you, in some instances all the way back to 1993! Still think it’s not worth checking whether your property’s banding is correct?

Only a week or so ago, I was talking to a client whilst surveying the retail premises he was taking on the lease of (maybe there are ‘green-shoots’ out there?) and the discussion came round to Business rates….please keep reading!

There had, apparantly, been a spate of what can perhaps be kindly described as unscrupulous individuals posing as experts on Business rates promising reductions and pursuading people to sign contracts which, on closer examination proved to very onerous.

Please be aware. If you are approached by anyone without invitation, check them out first. Are they RICS regulated and qualified? Check they are who they say they are and don’t be rushed in to signing anything. Read through any contract carefully and at you leisure. If you are not 100% satisfied that what you are signing is reasonable and, in particular, that it clearly sets out what you pay if the appeal against the rates assessment is successful, DON’T sign it.

You can go on line and check your new business rate and how the calculation has been arrived at. The figures are based on values in 2008 and may now (given recent events) seem high. This is not a grounds for appeal per se.

Please remember the old adage ‘if it looks too good to be true, it almost certainly is’ .

On the 1st January 2010, homebuyers will face two tax increases; stamp duty and vat. The threshold at which stamp duty is charged will revert to £125,000 (from £175,000). In otherwords, all property sold for more than £125,000 will be subject to a 1% levy. On a property sold for £175,000, an additional amount of £1750 will need to be found for stamp duty after 1st January 2010.

VAT will also revert to 17.5% on 1st January 2010.  In other words, you will be charged an extra 2.5% on professional and other fees incurred in the moving process.

You might not think many people in East Anglia will be affected - after all, house prices are, on average, above the national average and the area is reasonably affluent, isn’t it? You might be surprised to learn that the average house price in Cambridgeshire is a little under £169,000. Lowering the stamp duty threshold will affect an awful lot of properties in our area. Put simply, I suspect that from 1st January 2010, additional charges in the order of £2000 will apply to a property sold for £175,000. Happy New Year!