CGT increasing from 18% to 40% to fund lower paid people
Discussion
High CGT without an account for inflation could easily see a long term gain turned into a real life loss because of tax. Is discouraging long term investment really the way we want to go?
However, sadly, I wouldn't be surprised if rationality were set aside to satisfy the politics. People getting CGT are "rich" and giving them any "tax breaks" is politically difficult. 10% effect, 90% perception.
However, sadly, I wouldn't be surprised if rationality were set aside to satisfy the politics. People getting CGT are "rich" and giving them any "tax breaks" is politically difficult. 10% effect, 90% perception.
Globulator said:
also likely fall foul of IR35 later anyway.
Is this the IR35 that is under review?http://www.computing.co.uk/computing/news/2263672/...
M400 NBL said:
If this happens and there is no taper relief, a lot of landlords will be tempted to sell up.
On the other hand - it could have the opposite effect. It could make holding on to property for the rental income far more attractive a proposition than doing a place up and selling it on.Also - since CGT is only payable on any gain in price between buying and selling a property. In a falling or stangnant market - its unlikely to have much of an effect either since you wont actually be making any capital gains on which to pay tax.
Many landlords may simply decide to play the long game and keep any properties until such time as the CGT rules are changed again. This could lead to less not more fluidity in the FTB market.
Edited by Moonhawk on Wednesday 26th May 16:47
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