25th
Mar 2016
George Osborne has once again kicked private landlords in this year’s budget as buy-to-let investors have been left out of the major cuts in Capital Gains Tax (CGT).
This is another major blow to private landlords as with the reduction on the wear and tear allowance and along with the new 3% Stamp Duty starting on April 1st; it does seem that the PRS is being unfairly targeted.
The new rules mean that landlords will not be eligible to receive the latest reductions in CGT, whereas investors in stocks and shares will be able to enjoy them.
At present the annual CGT allowance is £11,100 however the new basic rate of tax will be reduced from 18% to 10%, with the higher rate being cut down from 28% to 20%;the cuts are being introduced from April 1st.
Osborne has decided that any gains from selling buy-to-let properties and second homes etc will still be taxed by the original 18% and 28% rates, unlike investors in stocks and shares. The Chancellor’s reasoning behind who is eligible for reductions is to “ensure that CGT provides an incentive to invest in companies over property”.
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