News Category: Industry News
\nPublished: 17-May-2010 <\/p>\n
Concern is mounting over the Government\u2019s plans to hike Capital Gains Tax to the same levels as income tax \u2013 effectively, a 22% rise for many.<\/p>\n
There are fears that there could be a fire sale among buy-to-let landlords rushing to dispose of properties before the new rate kicks in.<\/p>\n
Caroline Kavanagh, group lettings director for Badger Holdings, parent company of Townends and Regents estate agents, said: \u201cHave they gone mad?<\/p>\n
\u201cThe buy-to-let market has kept many businesses going through what has been and continues to be a difficult financial climate. <\/p>\n
\u201cWith demand already outstripping supply, the industry is in need of more investors coming to the table, not the complete opposite.\u201d<\/p>\n
Mike Goddard, chief executive of Belvoir, called for clarity and said landlords should adopt a wait-and-see policy. <\/p>\n
He said: \u201cUntil we have the full details of the Government\u2019s proposals, we will not know if there are any plans to offset an increase in CGT. There may, for example, be plans to include taper relief.\u201d <\/p>\n
Tax specialists Moore Blatch warned against a fire sale of properties, saying that if house prices carried on rising at the current annual rate of 7.5%, then it would pay to hang on.<\/p>\n
David Charlesworth, head of wealth management at the firm, said that an investor selling a \u00a3200,000 property now with a capital gain of \u00a350,000 would be liable for \u00a37,182 CGT at 18%. The net worth of the property would therefore be \u00a3192,818. <\/p>\n
However, if property prices increase a further 7.5% over the next 12 months, the property would be worth \u00a3215,000 and the gain would be \u00a365,000, meaning a tax bill of \u00a321,960 at 40%. The net worth of the property would therefore be \u00a3193,040 \u2013 worth more to the owner than now.<\/p>\n","protected":false},"excerpt":{"rendered":"
News Category: Industry News Published: 17-May-2010 Concern is mounting over the Government\u2019s plans to hike Capital Gains Tax to the same levels as income tax \u2013 effectively, a 22% rise for many. There are fears that there could be a fire sale among buy-to-let landlords rushing to dispose of properties before the new rate kicks…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6,9],"tags":[],"_links":{"self":[{"href":"https:\/\/craven-wildsmith.co.uk\/blog\/wp-json\/wp\/v2\/posts\/69"}],"collection":[{"href":"https:\/\/craven-wildsmith.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/craven-wildsmith.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/craven-wildsmith.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/craven-wildsmith.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=69"}],"version-history":[{"count":1,"href":"https:\/\/craven-wildsmith.co.uk\/blog\/wp-json\/wp\/v2\/posts\/69\/revisions"}],"predecessor-version":[{"id":85,"href":"https:\/\/craven-wildsmith.co.uk\/blog\/wp-json\/wp\/v2\/posts\/69\/revisions\/85"}],"wp:attachment":[{"href":"https:\/\/craven-wildsmith.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=69"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/craven-wildsmith.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=69"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/craven-wildsmith.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=69"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}