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Capital Gains Tax to Increase
In this week's budget the Chancellor announced that Capital Gains Tax would increase to 28% from its current 18%.
For those in the property market, this affects buy-to-let landlords and people with second or holiday homes. They will now have to pay more in tax when they come to sell their property if they do so at a profit.
Commenting on the increase, Tony Rice of Bedfordshire-based specialist mortgage and insurance brokers, TMP Mortgage Zone said: "There was some concern in the market that the budget would see Capital Gains Tax increase to 40% or even 50%, so it could have been a lot worse. Estate agents I have been talking to over the last few weeks were worried that such an increase would result in a flood of properties coming on to the market. It is likely that some still will, but not as many as they feared."
Unlike some changes announced in the budget, such as the rise in VAT from 17.5% to 20%, which will come into force later in the year, the change to Capital Gains Tax has been made with immediate effect.
[ 24-06-2010 ]
