An expert has predicted that capital gains tax could be raised to 25 per cent in Alistair Darling’s next Budget.
An expert has predicted that capital gains tax could be raised to 25 per cent in Alistair Darling’s next Budget.
Richard Bowser, editor at Property Investor News, claimed that he is “absolutely convinced” the rate will increase but that this will have only a minimal effect.
He said it is only logical that this rate will rise but that this will affect everybody’s tax position differently.
Property investment fund returns were taxed at 40 per cent until recently, he added, as the capital gains tax was only lowered to 18 per cent on these two years ago.
He stated: “It is very likely [that the rate will go up]. It is probably going to be 25 per cent, maybe even more, but the devil will be in the details in respect to allowances and reliefs.”
James Hyman, partner for residential sales at Cluttons, recently claimed that the change in this tax could have a serious impact on property values.
