Capital Gains Tax Review

As most landlords will already know, the rate of CGT is set to increase from 18% to 28% from 23 June 2010, although taxpayers with taxable income and gains below £37,400 will continue to pay CGT at 18%. These changes affect any property bought by a private investor which is regarded as a non–business asset, such as buy–to–lets and holiday homes.

Regardless of the figures, the real question is: Will the rise in CGT stifle the buy–to–let market and force up rents, or will investors continue to view bricks and mortar as a viable long term investment?

In recent months, landlords have considered disposing of their property to avoid the impact of CGT increases, whilst potential new investors have put their plans to buy on hold until they had a clear indication of the implications of the recent budget.

This has contributed to the shortage of rental stock in Oxford. However, we strongly believe that landlords should continue to choose a regulated lettings agent with well trained staff and expert knowledge of the Oxford market, rather than simply comparing fees.

Here at scottfraser, our investor landlords have taken a long–term view as advised by our Property Search & Acquisitions department. "Whilst nobody can predict what the CGT rate will be in ten years time, we can provide our landlords with expert advice on acquiring residential investments that will not only generate rental income year after year, but also provide the opportunity for continued capital appreciation" says Lucy Taylor at scottfraser’s Head Office.

If you are looking for your next investment, contact us for more information on our award winning Lettings & Management service.

Lucy Taylor