“That is why the details matter. The Government needs to consider how the charge works in practice for people who are asset-rich but cash-poor, including what support or deferral arrangements will be available.”
Stamp Duty Land Tax adds further complexity for anyone considering a move. Under current standard residential rates, buyers pay two per cent on the portion of a purchase price above £125,000, five per cent above £250,000, ten per cent above £925,000 and twelve per cent above £1.5million.
When combined with legal fees, surveys, removals and mortgage costs, the expense of relocating can significantly erode the proceeds of a sale.
The Budget has also raised questions about the tax treatment of second homes and investment properties. Holding a property personally versus through a limited company can produce very different tax outcomes at every stage, from acquisition through to disposal.
Mr Castle urged caution. “Get independent tax advice before making a decision about ownership or selling,” he said. “Changing the structure of a property investment is not something to do on the assumption that it will automatically save you money.”