Tax reform 'leaves landlords in win-win situation'

News Category: Legal

This article was brought to you by Rentman the premium property management system

The reform of Capital Gains Tax (CGT) has left UK landlords in a "win-win situation", it has been claimed.

In the last Budget CGT was overhauled with a new single rate of 18 per cent introduced.

Previously, the rate was fixed at 40 per cent for the first three years that a property was owned, and then at two per cent less per year to a minimum rate of 24 per cent after owning it for 10 years.

According to TheMoveChannel.com, the change is "great news" for people with property portfolios.

The site claims that people who have been unsettled by the downturn in the property sector have been offered a great opportunity to sell up and exit the sector without being taxed heavily.

Meanwhile, those who stay in the market will benefit from the upswing in demand for rental accommodation.

Dan Johnson, managing director of the firm, said: "So, longterm or short, the change in CGT rate is good news for home-owners and if the property market gains momentum, some investors will make a ‘nice little earner’ by selling.

"But even if they decide to ride out the market’s uncertainty, the opportunity to maximise and profit from their rental yields leaves landlords in a win-win situation."

How to stay legally compliant with letting agency software