Property agency Chesterton says the Government’s move to scrap the existing taper relief system will affect a wide range of property owners.
Area director Richard Davies says that while everyone will still be eligible for CGT allowance, which currently stands at £9,200, any profit earned over that amount will be charged at a flat rate of 18 per cent.
“This is good news for those with a second home and buy-to-let landlords, who are presently charged between 24 and 40 per cent, depending on how long they have owned the property.”
But Davies points out that this announcement is disappointing for those who own a furnished holiday let as their tax liability is now set to rise from ten to 18 per cent.
“There are also concerns that we will see a flood of buy-to-lets being put on the market immediately after the April deadline, as there is now no incentive to invest in property on a long-term basis”, Davies adds.