The Inside Edge
Are you wondering, what is the capital gains tax on my Property?
If you’re wondering how the newly formed coalition government will affect the Capital Gains Tax payable on selling a house in the UK then you may be interested to hear that Citywire reported this morning that an increase in CGT is expected to be central to the tax reforms proposed by the new government.
picture courtesy of freedigitalphotos.net
Currently CGT is levied on the sale of assets, resulting in a profit (and after a £10,000 annual allowance) , such as the sale of a house. The current rate is an 18% flat rate (there was previously a scale) which Citywire this morning reports will rise to nearly 40%.
Citywire also claims that Conservative plans to raise the inheritance tax threshold will be dropped as will the Liberal Democrat proposal to levy a ‘mansion tax’ on high value properties worth £2,000,000 or more.
The new plans will be revealed in the George Osborne’s (the new Chancellor) emergency budget which will be held within 50 days.
Great post.
A rise in capital gains tax to 40% is incredibly high and would put a lot of people off selling their home or entering the property industry.