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Scramble To Escape Capital Gains Tax

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Perhaps it will begin to sink in with some more people?

But lots of Tories opposing it so we will see whether Cameron has balls or not.

Anxious investors are preparing to offload second homes and shares in an attempt to avoid a government tax raid that is causing growing fury among Conservative ranks.

The coalition Government is facing its first serious rift after Lib Dem aspirations to rebalance the tax system ran into angry opposition from Tory backbenchers and grassroots supporters in the shires. In response, George Osborne has opened talks on watering down the planned increases to capital gains tax before his emergency Budget on June 22.

The unrest comes amid signs of a rebellion among high-earning Tory supporters preparing for a fire sale of shares and second homes because they are worried about the imminent tax crackdown. There are thought to be more than 250,000 second-home owners in the UK and it is thought that hundreds of thousands more investors could be caught out by the changes when they sell assets.

Simon Aldous, of Savills, the estate agent, said that he has seen a 40 per cent increase in valuation inquiries over the past ten days.

Stephen Herring, senior tax partner at BDO, the accountants, said: “We are being inundated, and I wouldn’t say that lightly.” Meanwhile, one wealth management chief said that his clients had issued instructions to sell their shareholdings in anticipation of a higher capital gains rate.

More at: -

http://www.timesonline.co.uk/tol/news/uk/article7137677.ece

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Ahh c'mon - Cameron and co are only in this for the money.

I suspect this CGT rumour is nothing more than a handy way for him and his mates to snap up assets at bargain prices from suckers before the devaluation of the currency begins in earnest.

Edited by Krackersdave

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Many MPs have multiple homes and cashed in during the Brown HPI years. Tony B was a shining example of house ownership greed among our MPs..

There may be some sort of token increase in CGT but I doubt houses will fall into any nets. Pity as it would redress a lot of the damage Brown did and help return affordability to the market. But then again that would be too much of a benefit for the less well off and would hit the rich too hard--something NO politician with a BTL portfolio would wish to contemplate.

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I'm advising people to sell their liquid investments now to lock in the gain at the lower rate. Then buy back, even on the same day if possible.

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Anxious investors are preparing to offload second homes

Correction:- Anxious investors are preparing their attempts to offload second homes.

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Many MPs have multiple homes and cashed in during the Brown HPI years. Tony B was a shining example of house ownership greed among our MPs..

There may be some sort of token increase in CGT but I doubt houses will fall into any nets.

It should idealy only fall on real estate gains. If it's not going to fall on real estate at all, then it is a bit of a disaster

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Vince Cable was just on Fivelive, Nicky Campbell asked him straight about captial gains on second homes and Vince Cable gave a politician's answer...

It sounded as if it was going to happen but then again he did not come out and say it was going to happen.. waffled on about people, what they earnt and paid in tax for working and what they earnt in other ways that was not taxed... could go one way or the other...

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I'm advising people to sell their liquid investments now to lock in the gain at the lower rate. Then buy back, even on the same day if possible.

Can't do that with shares though. The Bed and Breakfasting loophole was blocked some years back. You have to wait a while before buying back.

No issue with houses though.

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Can't do that with shares though. The Bed and Breakfasting loophole was blocked some years back. You have to wait a while before buying back.

No issue with houses though.

You can bed & spouse to avoid the 30 day rule or just buy something similiar instead.

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At first I thought that this return to 40% CGT on property was a non-story as it's just a reversion to how things were for a long time. However, thinking about it, there are a lot of people with multiple properties who, if they sell and then need to pay 40% capital gains will not have enough money to do so as they have other debts/or mortgages on slave box flats with negative equity to cover. Am I right in thinking this? So it could be a bit of a rush by those who need not to lose those percent to the taxman? Still think the majority won't be bothered though until it stops being a piece of cake to claim that somewhere was your PPR on selling it.

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At first I thought that this return to 40% CGT on property was a non-story as it's just a reversion to how things were for a long time. However, thinking about it, there are a lot of people with multiple properties who, if they sell and then need to pay 40% capital gains will not have enough money to do so as they have other debts/or mortgages on slave box flats with negative equity to cover. Am I right in thinking this? So it could be a bit of a rush by those who need not to lose those percent to the taxman? Still think the majority won't be bothered though until it stops being a piece of cake to claim that somewhere was your PPR on selling it.

I doubt many will realise it happening, if it happens, until the day after the budget.

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Correction:- Anxious investors are preparing their attempts to offload second homes.

Correction:- Anxious speculators and wannabe rentiers are preparing their attempts to realise "profits" to avoid having to work for a living.

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At first I thought that this return to 40% CGT on property was a non-story as it's just a reversion to how things were for a long time. However, thinking about it, there are a lot of people with multiple properties who, if they sell and then need to pay 40% capital gains will not have enough money to do so as they have other debts/or mortgages on slave box flats with negative equity to cover. Am I right in thinking this? So it could be a bit of a rush by those who need not to lose those percent to the taxman? Still think the majority won't be bothered though until it stops being a piece of cake to claim that somewhere was your PPR on selling it.

Oh C'mon - people aren't stupid enough to secure loans on, and spend, unrealised CG without considering the future tax liabilities...

I mean, that would be stupid.

All all these amateur BTLs have been telling us how wise they are for years.

Watch those piggies squeal. Loving it.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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