New tax system is to stimulate secondary market
real estate stocks. Changes to taxation turnover of
real estate companies will let market dealers compensate expenditures on taxes and allow forming market worth GBP 10 billion within next two years.
Earlier investors had to pay income tax on capital growth, but they couldn’t compensate tax expenses. This is believed to be a barrier for the market growth, while the new standard will be quite revolutionary on the real estate market. “The market for them will be huge once people realize how cheap they are, how flexible they are and how easy they are to transact”, Phil Nicklin, tax partner at Deloitte, mentioned.
Secondary market real estate stocks will allow the companies to reduce external impact on real estate market from malls and offices due to the use of swap agreements with those who wish to have advanced access to the market.