The growing CGT rebellion: Fear of tax grab sparks mass sale of homes and shares

carolt

For all those who said it would have no effect:

http://www.dailymail.co.uk/news/article-1282360/The-growing-CGT-rebellion-Fear-tax-grab-sparks-mass-sale-homes-shares.html

"Homes are flooding on to the property market and shares are being dumped by worried investors who hope to dodge the Government's controversial plans to hike Capital Gains Tax.

The country's biggest estate agency group, Countrywide, said the number of homes put up for sale in the past week was 34 per cent higher than the week before and 68 per cent higher than this time last year.

Investment experts believe plans to increase the tax on profits made on 'buy to let' properties and share portfolios are a key element of the great rush to sell."

Doctor_Gloom

The rats are fleeing the sinking ship.

chris_m

Hmm - it is the Daily Wail, after all.

Rinoa

carolt wrote: »

the number of homes put up for sale in the past week was 34 per cent higher than the week before and 68 per cent higher than this time last year.

Vendors who are so determined to sell their properties that, the week previously, a £250 HIP pack deterred them.

:rotfl:

carolt

Nothing to do with HIPS - though you're right, that is going to affect supply levels too.

This is to do with people worrying they're going to lose tens of thousands of pounds in CGT, not £250 on a HIP.

Can't blame them - selling now if you're in that situation sounds very sensible.

StevieJ

carolt wrote: »

Nothing to do with HIPS - though you're right, that is going to affect supply levels too.

This is to do with people worrying they're going to lose tens of thousands of pounds in CGT, not £250 on a HIP.

Can't blame them - selling now if you're in that situation sounds very sensible.

So you know what is going to be in the budget, CGT could well be backdated to cover 2010/11 tax year, anyway must be a buoyant market if they think they can get rid of those houses in 40 days

ajex

Where I live ,I have seen no jump in the properties on the market ; and as a motivated buyer , I for one am not happy about removal of HIPs

silvercar

So what happens to the tenants in these BTL properties? I haven't seen anything local advertised with tenants. Have they all been given notice? Are they all co-operating with viewings?

PasturesNew

I live where there are a lot of holiday homes, 2nd homes, rich bugg4hs from London owning places..... RM's consistently yielded a results list of about 100 as each day I search for "anything, in this county, in the past 24 hours". Last week it was about 130 on Thursday, 150 on Friday.... and yesterday it yielded 435!!

Many towns round here are empty most of the time, as second homes aren't used, holiday lettings places aren't filled and new builds are unsold. My actual town is like a ghost town now outside of peak times as swathes of old hotels were bull-dozed for new flats ... and some are still just a big dirty hole in the ground.

P.S. Lots of businesses on the market too, I guess this is their peak selling time when viewers will see the pubs/shops full of customers, unlike September when they get an average of 3/day.

Soubrette

ajex wrote: »

Where I live ,I have seen no jump in the properties on the market ; and as a motivated buyer , I for one am not happy about removal of HIPs

I've seen a small jump in properties on the market but to be honest they are on for higher than 6 months ago and seem to be moving faster. Pretty much what I would expect for a spring bounce.

I'm looking to move up to the next house bracket so a percentage fall in prices would be lovely. I'm looking for it but it's not happening in my area yet

Sou

JP45

Doctor_Gloom wrote: »

The rats are fleeing the sinking ship.

Plenty of stories in today's press (not just the Daily Mail) of BTL and second home owners deciding to sell up, including Merryn Somerset Webb's mother:

There is also a new entrant into the mix: the coming rise in capital gains tax. We don’t know how high this will go, but most people with a second home or a buy-to-let investment are likely to face a much higher tax bill on their gains than they had expected. That means they are probably running the numbers on selling right now.

A house bought for £100,000 in 1985 would now be worth £490,600 on Nationwide numbers. Sell it today and you’ll pay CGT of £68,500. Sell it at 40 per cent and, assuming no inflation allowances, you’ll pay £152,200. That suggests you should get out now – even if you can only do so at below what you think the market price should be. Sell the £490,600 house today for £450,000 and you’ll still clear more post-tax than if you waited and sold at 40 per cent. Even my mother is at it – her buy-to-let properties are joining the glut coming on to the market this week.

So, all in all, I’m not holding out much hope that our much-loved new townhouse will make our fortune.

http://www.ft.com/cms/s/2/da5c3a24-6a7e-11df-b282-00144feab49a.html