Landlords cash in on CGT reform
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Investors who sold in Q1 2008 faced a capital gains tax charge of 34%, compared to the 18% tax rate introduced in April.
The Mortgage Works says when you factor in the income tax over the five-year period, landlords who sold their properties in Q1 prior to the Capital Gains Tax reform faced a higher tax bill.
Andy McQueen, managing director of TMW, says: “With substantial returns came large tax burdens and it is clear that those who sat tight and waited to sell in Q2 2008 instead of Q1 really saw the benefit of the government's CGT reform.”
He adds: “It is sensible to remember that buy-to-let investing is done best with a long-term perspective. While house prices might have slowed recently the outlook is still promising and those with investment properties should be encouraged to continue renting them out instead of selling.”
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