Insurance News Archive

Tax increase 'will only affect some buy to let insurance policyholders'

Posted by Jonathan Walker

Following the government's Emergency Budget earlier this week, buy to let insurance policyholders were disappointed, but not surprised, to learn of an increase in capital gains tax (CGT), an expert has said.

Andy Young, chief executive officer at mortgage broker Landlord Centre, said that although a rise in CGT for high-rate taxpayers from 18 to 28 per cent would be "disappointing" to many, it was a better result than most people predicted.

He added that the hike would only really pose major issued for wealthier buy to let investors and was "unlikely" to have any significant impact on the private rental market as a whole.

Mr Young said: "The fact remains that most residential property investors are in the market for the medium to long term and they seek returns through rental yields as well as capital gains."

Prior to chancellor George Osborne's announcement on Tuesday, the Royal Institution of Chartered Surveyors revealed that 72 per cent of its members believed that a tax hike would deter new buy to let investment.

24 Jun 2010