ABSTRACT
The taxation of property affects us all. People use land and buildings for all their work and leisure pursuits. Most importantly, people need shelter, and in serving that need over 200 000 houses are completed in Britain each year. To fund house purchases financial institutions lend money, and currently the building societies alone hold mortgages to the value of around £160 000 000 000. Property is also the object of commercial finance. About £30 000 000 000 is held in property investments by superannuation funds and pension funds. Property development companies have outstanding commitments of nearly £27 000 000 000 due to commercial banks. The construction industry turns over about £200 000 000 a year. Such figures give some indication of the scale of financial importance of land and new buildings. The initiation of development projects and transactions of interests in land are important in themselves and the effect of tax on holding, developing or trading in property can be critical when decisions are made on land use disposals. But it is not only the large financial institutions and property companies which are concerned about the incidence of tax on property.
