Capital Gains Tax

**AtW** · 17 May 2010, 08:14

It was 40% for a long time - it should have never been put (just 2 years ago) to 18%.

What's outrageous is that fking Brown effectively removed taper relief for long term investors - that was probably one good thing he did 10 years ago and scrapped it.

New Govt mentioned something like having different rates for business and non-business assets, but I'd expect everyone to get hammered as they need all the money they can get.

**Churchill** · 17 May 2010, 08:14

I would think that anyone who let's their "outrage" be known is going to be towards the top of any investigation list...

**BlasterBates** · 17 May 2010, 08:22

...well it was 40% before but with a £10,000 threshold, so normal people wouldn't have to pay it. That threshold will be mostly removed.

**rootsnall** · 17 May 2010, 08:43

Originally posted by BlasterBates View Post

Is anyone "outraged" at the increase.

Or is this a non-issue?

I suspect it's reduction to 18% was really a measure to help support BTL and hence the property market. I'm sure there will be many ways around it for wealthy people, but your PAYE middle class mug will be hit with a bigger tax bill.

**BlasterBates** · 17 May 2010, 08:45

ha ha

Tax rises could prompt 'fire sale' of second homes and shares - Telegraph

Looks like after a fire sale of second homes, the housing market just might get pushed over the edge. Coupled with severe spending cuts, should shove a few Lib-Dem voters into grinding poverty. There's no such thing as a free lunch. The "lets pay for the huge deficit by targeting a non-Lib Dem voting group" won't work

**Moscow Mule** · 17 May 2010, 08:49

I think there's a bit of faulty logic there - if you're renting out a second home and are gaining an income from it, why would you want to sell it now because of the threat of CGT on a future sale?

Perhaps some folk will, but I can't see every landlord in the country suddenly wanting to sell up.

**Gonzo** · 17 May 2010, 09:06

Have you read the article?

Originally posted by BlasterBates View Post

Tax rises could prompt 'fire sale' of second homes and shares - Telegraph

Headline

Tax rises could prompt 'fire sale' of second homes and shares

First paragraph

A 'fire sale' of second-homes, shares and fine art is expected as investors try to beat widely-expected leaps in capital gains tax (CGT) and VAT.

VAT? How?

Further down the article

Estate agent Knight Frank confirmed it had taken a number of calls from second-home owners contemplating a quick sale but said it was "far too early" to tell if there would be a rush of property sales and that many vendors were gambling on the Chancellor introducing the higher rate of CGT from April 2011.
Liam Bailey, head of residential research, said: "The initial response from the industry has been to suggest there will be a mass sell off of investment and second homes. This is unlikely.

However most investors in residential property are in the market for the long term. With interest rates so low, rental yields have become a more important driver of demand rather than short term capital price growth."

He added that 70 per cent of second-home owners intended to retire to their other property making it unlikely they would rush to sell.

However, Stephen Herring, senior tax partner with accountants BDO, said: "It is unlikely that many will be able to sell quickly enough to benefit, although it is possible we will see home owners become keen to finalise sales that have already been teed up.

So probably not going to happen then. Who writes this guff?

I am OK with capital gains being taxed the same as income, with allowances for entrepreneurs, long term investors and inflation. Sort of like the old system really before Darling ****ed about with it.

**BlasterBates** · 17 May 2010, 09:09

Well I haven't heard about taper relief (i.e. inflation). If this goes through as it is it penalises those whose savings are in shares.

I calculate that taking into account inflation they'll basically take what ever your asset is a take portion of it. If I sell my share portfolio in 20 years after I've paid the tax, if I'm lucky in real terms it will be basically the same amount. On the other hand home owners with homes who've risen by several hundred thousand pounds pay no CGT. That's just special interest groups getting their politicians to take money off another special interest group (share owners).

**TimberWolf** · 17 May 2010, 09:15

Looking on the positive side. If house prices do drop, the capital gain will be less. Less tax to pay. Boomed.

Capital Gains Tax