If Your Are Thinking Of Selling BTL Property, Do It Before The General Election

Following the General Election the incoming Government must redress the £180bn for the current financial year and is going to have to look at ways of increasing revenue and decreasing expenditure. 

As property transactions and values are starting to creep up again, most investment (BTL) property sales will be showing capital gains.

The current rate of Capital Gains Tax (CGT) at 18% is very low and looks increasingly out of line with a new top marginal rate of income tax of 50% and will probably be brought back into line by the newly elected Government. 

If you are considering disposing of property, either through a gift or transfer to successors, or by sale to reduce borrowings in the expectation of increasing interest rates, you would be wise to do it before the General Election taking advantage of the current tax rate. 

The current, low, rate of CGT means that even if property prices recover more quickly over the next two or three years the net proceeds are likely to be eroded to a greater extent by an increase in CGT.

Where a transfer to the next generation is being considered, action now will almost certainly result in a lower tax bill than after the next Government Budget.

What We Say ~  it won't do you any harm to take qualified tax advice now.  At least you will know your options!

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