Capital gains tax and the sales affect
Prospects of a change to capital gains tax, with an increase almost certain, has certainly got us all talking with agents reporting huge rises in the numbers of valuations.
It must be remembered that the provate renal sector is the key to housing the UK's growing population; there is a chronic shortfall of housing and this will not be imporved by the lack of supply from Housing Asscociations and low cost rental through S106 notices. Many commentators are saying that the Government should encourage, not discourage growth in our sector.
However, most investors take a long-term view and will see that CGT has been changed before. Jeremy Leaf, a spokesman for the RICS, says that many investors are more interested in income than capital appreciation. “People won’t sell unless they were going to soon anyway,” he says. “Why would you want to incur any tax at all if you can still enjoy decent returns?”
Tags: capital gains tax property
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Added By: gbressington on 11th Jun 2010 at 10:02
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