Landlords serve notice on capital gains rise
3rd June 2010
The planned rise in capital gains tax has been met with widespread opposition by landlords.
Nine out of 10 landlords see the rise as yet another financial sting in the tail of the housing market system on top of existing running costs such as specialist home insurance, agent fees and maintenance costs. They would oppose any introduction of a new rate that could bring capital gains in line with income tax.
More than a quarter (26%) say they are considering quitting the buy-to-let sector altogether in anticipation of the hike in capital gains tax, while a further 71% of investment landlords say the new rate would make them reconsider buying new properties in the future.
The study, carried out by lettings agency network LSL Property Services, found that more than a third of landlords consider the value of their property portfolio to be of greater importance than rental returns.
The proposed rise, which is widely expected to see the rate increase from 18% to 40 or 50%, could be included in the Government's emergency Budget due to be unveiled later this month.
However, Conservative stalwarts David Davis and John Redwood have already spoken out against the capital gains hike, saying it would stunt growth in the housing market, stifle investment and impact on savers.
Copyright © Press Association 2010
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