Landlords 'not paying as much capital gains tax as feared'

News Category: Management

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Landords in the buy-to-let market are not paying as much capital gains tax as they might have expected, experts have said.

The chancellor of the exchequer recently confirmed that the government would increase the capital gains tax rate from 18 per cent to 28 per cent.

Ducalian noted that while this was still a "substantial" increase, it was not as much as some buy-to-let investors had feared.

Timothy Lambert, head of consulting at Ducalian, commented: "This may mean investors do not jump to sell properties, but may mean we have more stock on the market for the latter part of 2010."

He was speaking after the Bank of England published figures which indicated the number of mortgage approvals dropped between April and May 2010.

Mr Lambert said this is in line with its recent forecasts and suggested that mortgage approvals could remain static or fall further during the remainder of the year.

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