Food for thought26 Aug 2024 02:56
Currently, property gains attract CGT at 18% for landlords or second homeowners paying basic rate tax, rising to 24% for higher earners. If aligned with income tax bands, a basic rate taxpayer would pay slightly more CGT at 20%, but the better off would pay at either 40% or 45%.
Shaun Moore, tax and financial planning expert at Quilter, warned. "This will cost the average landlord or second homeowner £11,000, so they have good reason to act."
The big question is whether Reeves hikes CGT with immediate effect, or waits until the start of the tax year in April 2025.
If she delays, it could trigger a rush to sell second properties, whipping the housing market into a frenzy, and possibly driving down prices.