Insurance News Archive

Tax change 'could hit buy to let property insurance holders'

The changes to Capital Gains Tax that were announced by the chancellor George Osborne this week could affect people with buy to let property insurance, according to one industry expert.

Buy to let landlords are likely to be concerned about the alterations, said Helen Adams, managing director of FirstRungNow.com.

The emergency Budget revealed that taxpayers on higher rates will now pay 28 per cent on their capital gains.

This could encourage some landlords to sell their properties, Ms Adams suggested, although with VAT being increased now could still be the best time to get on the property ladder, she continued.

"Property prices will go up slightly in months to come - but they will not run away with themselves again," Ms Adams added.

Research from Moneyfacts.co.uk has revealed that the average rate on a two-year fixed-rate mortgage deal has fallen to 4.52 per cent, the lowest level since September 2003.

Posted by Judith Stevenson

25 Jun 2010