CGT Changes

Guy_Montag

taper relief abolished in favour of an 18% flat rate.

What do the landlords on this forum think?

SquatNow

It's a massive early christmas present wrapped up in pretty ribbon for all the BTL speculators who waited too late to sell.

It's a huge wodge of taxpayers money being given to people who didn't earn it.

It's absolutely disgusting, it's like we live in a banana republic.

I'm actually ashamed to be british.

Gorgeous_George

Just had a quick look on BBC News (been at work so missed the announcement). Unless I'm missing something, it seems like good news for BTL LLs. I think I'd better do the maths to make sure.

EDIT to add:

A gain of £100K after ten years would have attracted the maximum taper relief of 40% and resulting in a CGT bill of £16,640 (assuming 2 x CGT relief of £9,200 and no other allowances).

Under the new rules (18% CGT rate and no taper relief) leaves a CGT bill of £14,668. The savings are greater if the property has been owned for less than 10 years.

Just under £2k saved.

Unless I'm wrong.

Personally, it makes no difference as I'm not selling.

EDITED AGAIN TO ADD:
SquatNow, relax. The difference is quite small for BTL LLs but the gains for the Treasury from other areas will be huge.



GG

SquatNow

The gains to the treasury from non-btler... from normal people.

Is money in the pocket of the BTL brigade at the expense of the common man.

I just have one question: WHy the hell do the unions give money to labour any more... Nu-Labour don't do anything to benefit the common man, just the rich.

I don't care if it £2000 or £2 or £2million.... BTL landlords don't deserve any more free money. They've done enough damage to the economy already, why are we giving them MORE free cash?

Gorgeous_George

We will have to disagree SquatNow.

BTLers take a risk and reap reward in a rising market. In a falling market, their gains will quickly be wiped out. No gains = no CGT.

Your anger should be directed to 2nd home owners who leave one of their properties empty for more than a month or two per year. These people are reducing the usable housing stock. BTLers do not reduce the housing stock.

GG

SquatNow

Anger directed at everyone SPECULATING in the property market who is getting a load of free cash. In this case that includes BTL, BTS, 2nd homers, holiday homers, all of them.

Yes, granted, some professional landlords are required, but they wont be selling.

The only hope we have is that prices fall fast enough that when BTL/BTS cretins come to sell after the new rule comes in they'll make diddly squat because they will have to sell at a loss.

Tip: Don't reward someone for taking a risk with someone elses money... cos BTLer arn't using THEIR money, it's money they've BORROWED from OUR pension funds. If they don't pay it back, everyone losses.

Gorgeous_George

You are Bruno and I claim my five pounds.



GG

ManAtHome

Desperate attempt to encourage (even more) short-termism and get some tax in quickly..?

SquatNow

I've changed my mind, it's all irrelevant.

For BTLers to get their profits and tax cuts they'd need to find someone who was:
A) Stupid enough to buy their crappy flats.
Actually able to get a mortgage.

Since the chance of those 2 things coming together are pretty slim...

budget_counsellor_shaz

Squat now why don't you leave Britain if you hate it so much......Theres a whole wide world out there that may make you happier.

Property is much cheaper in most other countries!

Then eventually you'll come back because you'll realise Britain wasn't so bad after all!

clutton_2

i am quite pleased at the reduction in my prospective tax bill from 40% CGT to 18% - i'd be a hypocrite to say otherwise.