Capital Gains Tax At 28% PDF Print E-mail
Blog and News - Economy
Written by John Angeletta   
Tuesday, 22 June 2010 15:17
Capital Gains Tax At 28%

Suggested panic selling by landlords fleeing the increase in CGT was averted today following the Chancellor's announced in his emergency Budget that this capital tax would rise to only 28%.

This new threshold, effective from midnight 22nd June 2010, is far less than the 40% speculated to be introduced in the next tax year.

This pre-emptive measure prevents landlords selling off investment property before a CGT rise could take effect. 

The Chancellor said, the coalition Government explored the possibility of increasing CGT above 28%, but that such a move would have created fewer returns and taper relief was too complex to administer and would become self-defeating.

Stuart Law, Chief Executive of Assetz, said, Osborne's CGT increase to 28% remains lower than the rates we had three years ago, of up to 40%, before Labour introduced the 18% rate. This move is not likely to have a negative impact on the UK property market as speculative investors are unlikely to sell off their buy-to-let property once this new tax rate is introduced at midnight tonight. Professional property investors are generally looking at the long-term benefits and see the importance of the regular income rather than short -term capital gains.
 
What We Say ~ The old maxim Tax Deferred is Tax Saved  is as true today as ever was! Building a property portfolio should be viewed as a medium to long term investment opportunity, enjoying above average incomes from rents along the way. BMV property remains the most tax efficient way to buy property!

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