Private clients' wealth management 'unaffected' by tax rises?

Private clients' wealth management may be little affected by next year's tax rises in Scotland, as one expert claims the revisions will not affect the country's real estate market.

Dianne Paterson, property partner at legal firm Russel and Aitken, notes the increase in stamp duty will only apply to houses worth £1 million or more, for which buyers may be unconcerned by rising levies.

And private client wealth management firms might also barely register the higher duties, as the law specialist observes VAT changes "will be relatively minimal in comparison with the overall demands of stamp duty and property purchase price".

Yesterday (November 15th), Knight Frank revealed half of prime Edinburgh real estate sales were concluded above the asking price, suggesting those with personal means have not been deterred from buying property.

As of April 2011, stamp duty on residences costing more than £1 million will be five per cent, in a possible bid to raise government income during difficult economic conditions.  ADNFCR-2318-ID-800238166-ADNFCR