Tax bill halves for landlords
News Category: Industry News
Published: 29-Aug-2008
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Reforms to capital gains tax have dramatically reduced the tax burden for landlords looking sell off properties, it has been discovered.
In April's Budget the capital gains tax system for landlords selling properties was reformed and replaced with an 18 per cent flat rate.
Buy to let lender The Mortgage Works has calculated that this has cut the capital gains tax burden for landlords selling up during the second quarter of this year to £16,581 for houses to £15,975 for flats.
This compares to the £30,597 on houses and £30,241 on flats that they would paid during the first quarter, before the system was introduced.
Andy McQueen, managing director of The Mortgage Works, commented: "Although the buy to let market has, like all sectors, been impacted by the credit crunch, landlords have continued to buy and sell properties on a regular basis.
"Thishas resulted in buy to let forming a higher proportion of net lending than previously seen in the mortgage market."
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