No I’m not talking about the rise to 5% on high end residential property which kicks in next year. Rather this was a hidden change which will affect commercial property purchasers from 4 January 2011.
Pat yourself on the back if you spotted that the increase in the rate of VAT to 20% will mean a corresponding increase in stamp duty land tax on commercial property transactions where VAT is charged.
On a £1m purchase not only will there will be £25,000 more VAT but there will also be £1,000 more stamp duty to pay.
If you would like to know more about VAT on commercial property, please feel free to contact me.