Capital Gains Tax Change: Better Than Expected

The general agreement concerning change to Capital Gains Tax recently announced in Emergency Budget is not as painful as it was expected.

After a long period of f that CGT on the sale of non-business assets is going to rise to an individual’s personal rate of income tax, up to 50 per cent, the subsequent announcement was perceived as a relief.

For base rate taxpayers CGT will remain the same (18 per cent), whereas higher rate payers will be obliged to pay 28 per cent.

Debatably, the greatest coup Chancellor George Osborne brought off was that of managing expectations, by making everyone believe that there would be far greater rises.

However, most experts claim that the changes to CGT won’t cause any damage to the buy-to-let sector in particular and the housing market in general.

Ray Boulger, manager at mortgage brokerage John Charcol commented that a change to CGT was the measure expected to affect the housing industry in the negative way. Fortunately, 28 per cent of CGT is manageable for most professional landlords. What is more, many landlords with small number of property are likely to find legitimate ways to keep their CGT liability at 18%.
 


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