The latest to come from the new government think tank on raising funds for the government "coffers" is to reintroduce inheritance taxes and place a FIVE times current tax on large properties. Whilst the plan is to tax "the rich" and hit people who own several properties and off shore investments, I am uncertain what is the criteria of a "big property". The uniform property tax rate of 1/1000th will be abolished and a new sliding rate scale will be introduced. Whilst the non taxable base will increase, and hence there are "promises" that small and average properties will be uneffected, the higher rate will be 3-5/1000ths of their tax value.
Of course there is only one problem with all this.......the government still does not have a complete database of all the properties in the country, and as we know many, many properties have been built illegally.
With inheritance tax changes will release the main home out of taxation and immediate relatives benefiting from more leniant allowances.
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