A CGT hike would hit share trading harder than B2L
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With regard to the potential impact of the government upping Capital Gains Tax, the issue is broader than the effect this might have on the buy-to-let market.
Any hike in the tax will affect a wide variety of activities, including share-dealing.
CGT is not just about the rising value of property, it’s about other earnings too - earnings that are already taxed, I might add.
Think about it, if I’m a landlord do you think I’m going to sell my property if the rate is hiked?
No, because the gain to be made from rental income over a long period is much more attractive than paying the CGT.
So what will happen? Savvy landlords will not sell properties and the government will not get all that extra money.
I think this political move is more likely to be targeted at the share-dealing sector where money changes hands on a regular basis and is easy to track after earnings are declared.
This letter is not a dig at landlords but remember, we live in a blame society whereby somebody has to pay up somebody else’s misfortune, usually because a lawyer wants a big payday.
This country has become weak and those who prosper have to foot the bill for underachievers.
LEE HARRISON
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