Insurance News Archive
Capital gains tax 'not such a worry for long-term landlords'
Posted by Jonathan Walker
Government plans to raise capital gains tax may deter new landlords, but should not be a major concern to long-term buy to let insurance policyholders, according to one expert.
The Conservatives and the Liberal Democrats released a coalition agreement last week announcing a rise in capital gains tax for non-business assets.
Chris Horne, editor at Property Hawk, said: "I think it may well put off some new investors because they will see the potential headline tax rate and perhaps not realise that there are ways of reducing your tax burden when you sell."
He added that the growing availability of mortgage products, "stable" rents and "strong" demand are all improving the current situation for buy to let insurance policyholders.
Mr Horne advised landlords to hold onto property for the medium to long term – ten, 15 or 20 years – meaning that, when the time comes to sell, taxation might be less of a worry.
The National Landlords Association reported yesterday that landlord optimism is at its highest level since the fourth quarter of 2010, due to improving market conditions.
20 May 2010
