Doubling Capital Gains Tax on Landlord Profits… yet another reason to sell?
The lift of lockdown this summer brought on huge movement in the property market, upsizing, downsizing, countryside fleeing, holiday home buying – you name it, it has happened. Our advice throughout to our Central London Landlords has been consistent – be flexible, be prepared for a rent reduction, make improvements if required.
In addition to this we suggested you book a Sales Valuation. Find out the value of your property in the current market before deciding your plan of action. In addition to this, with the new suggestion of potentially changing capital gains tax on profits from the sale of second homes – selling sooner rather than later is becoming more of a trend.
With so many new potential ways to create revenue for the government (for instance a new wealth tax, higher income tax have all been thrown into the mix) it has been suggested in a report to the government that £14 billion could be raised by making the capital gains increase. With a deficit that gets larger by the day, this type of easy revenue is appealing to any government given the current climate.
The chancellors main thinking behind the increase is to make the structure of capital gains simpler and bring it in line with current income tax.
"The disparity in rates between Capital Gains Tax and income tax can distort business and family decision-making and creates an incentive for taxpayers to arrange their affairs in ways that effectively re-characterise income as capital gains" the report claims.
With more rental properties available in Central London than ever before, the market is currently saturated. In addition, with more job losses imminent, a reduction in students, the increase in working from home – the next few months and years will be challenging for Central London’s residential market.
Our GLP Sales Team have seen a huge demand for studio and one-bedroom apartments as people are looking to move their families out of the centre of town and keep a pied-a-terre in order to ease their commute. Outdoor space is noticeable in demand and we have seen a rise in young professional’s keen to buy in Zone 1 and have an easy walk to work.
Find out how much your Central London Property is worth today, choose from one of our Three Valuation Tools – Instant, Social Distance and Appointment Only.
Feel free to take a look at our current Sales Properties online on our website glp.co.uk.
Greater London Properties are one of the few independent Estate Agencies in Central London and we are here to offer honest advice depending on your situation. Please give our team a call and we can put you in touch with the right person, 0207 734 4062.
Warm Regards
Kate Hill, Director