Buy-to-let landlords may benefit from 'entrepreneurs' relief'

News Category: Industry News

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Some UK buy-to-let landlords may stand to benefit from changes to capital gains tax.

Alistair Darling, chancellor of the exchequer, announced an "entrepreneurs' relief" last Thursday (January 24th).

The relief, which will come into effect on April 6th, will grant those selling a business a ten per cent tax rate on the first £1 million of gains.

The normal rate of 18 per cent will apply when more than £1 million is made from selling.

However, as full details of the relief have not yet been given, it is uncertain whether all investors in residential property will be specifically classed as "entrepreneurs".

According to the HM Revenue and Customs website: "The relief will apply to gains arising on disposals of the whole or part of a trading business (including professions and vocations, but not including a property letting business other than furnished holiday lettings) that is carried on by the individual, either alone or in partnership."

The announcement of the entrepreneurs' relief follows the backlash against the new 18 per cent flat rate of capital gains tax.

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