I am really not sure I agree with this but it comes from a legitimate source so I am going to give it an airing. Leaders, A prominent UK letting specialist has come out this week and said that they don’t believe that the huge rise in CGT planned by the government is likley to deter buy to let investors.
As we are all aware the UK CGT rate is currently set at 18 percent but there are plans to hike it up to 40 or even 50 percent very shortly. Most experts have been predicting fairly drastic consequences of this rise on the BLT market but Leaders chief executive Paul Weller has this week had this to say:
“We do not believe landlords will act hastily in the face of a possible CGT rise. They know that buying to let is a long-term investment which brings with it a good chance of a capital gain – unlike many other asset classes – and after all, a taxed gain is better than no gain or a loss. Besides, assets other than property that achieve capital growth will also be subject to CGT”
I guess there is some sense in what he says particularly regarding the fact that CGT will also apply to other assests as well as property but I can’t help thinking that if people feel the government are going to take nearly half of any gain they make through the hard work of renting out a property they may not think it is all worth the bother.
