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Scramble To Avoid Cgt

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

Some highlights:

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 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

...............

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

Is there some twisted logic in Cameron's mind here - prompt HPC here and now whilst he's got a chance of pinning it on Gordon? :unsure:

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This scramble, will soon be over. It will mean that if prices come down over the next couple of months, we won't be able to know whether this is because of the housing market running out of steam (quite a bit of evidence to suggest more and more were trying to unload properties since approx Jan), or the CGT rise. And you can bet any drops in indexes in the next month will be attributed to CGT rise avoidance.

Still, be nice to see those indexes drop ... and keep on going downnnnn....

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This scramble, will soon be over. It will mean that if prices come down over the next couple of months, we won't be able to know whether this is because of the housing market running out of steam (quite a bit of evidence to suggest more and more were trying to unload properties since approx Jan), or the CGT rise. And you can bet any drops in indexes in the next month will be attributed to CGT rise avoidance.

Still, be nice to see those indexes drop ... and keep on going downnnnn....

Well it won't be the CGT 'wot dunnit'. They may not sell in the event for all we know. It will be their decision to sell for fear of the market in the first place. Almost all 2nd home owners and BTL'ers will have bought when the rate of CGT was the sort of rate the Coalition wish to return to. It was only 18% from 2007. If you did but anything after that, there will be little if any 'gain' to talk about.

It's just a great big whinge from the right wing of the Cons. I agree with the middle ground and think the Coalition should go ahead as planned to raise CGT. Remember: 'Dear Chief secretary, I'm afraid there's no money left.'

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This scramble, will soon be over. It will mean that if prices come down over the next couple of months, we won't be able to know whether this is because of the housing market running out of steam (quite a bit of evidence to suggest more and more were trying to unload properties since approx Jan), or the CGT rise. And you can bet any drops in indexes in the next month will be attributed to CGT rise avoidance.

Still, be nice to see those indexes drop ... and keep on going downnnnn....

I reckon there will be loads of dodgy deals. One official price and then a split of the other bit under the table to avoid CGT. You know one for you, one for me type of thing. Oh and HMRC gets nowt.

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I reckon there will be loads of dodgy deals. One official price and then a split of the other bit under the table to avoid CGT. You know one for you, one for me type of thing. Oh and HMRC gets nowt.

Are GolmanSachs handling a new 'Second home collateralised investment vehicle for disgruntled antiCGT supporters'? ....Only a rumour then. You can bet they'll be betting on the fire sale coming if there really is one. Might be a lot of bluff and bluster. Either way, Mr Cameron is right to proceed with the raising of this tax.

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I reckon there will be loads of dodgy deals. One official price and then a split of the other bit under the table to avoid CGT. You know one for you, one for me type of thing. Oh and HMRC gets nowt.

And why would any buyer enter into such a deal?

Bearing in mind that a contract to "break the law" is unenforceable in totality, not just in the bit that breaks the law. So, on completion day the seller could keep your money, not give you the house and there wouldn't be a damned thing the buyer could do about it!

tim

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And why would any buyer enter into such a deal?

Bearing in mind that a contract to "break the law" is unenforceable in totality, not just in the bit that breaks the law. So, on completion day the seller could keep your money, not give you the house and there wouldn't be a damned thing the buyer could do about it!

tim

Or vice-versa, the buyer refuses to pay the un-enforceable 'bung' and gets the house on the cheap.

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Hopefully in the budget we'll see part 2 of the plan put into effect - The removal of the Govt subsidy for the BTL Brigade by slashing housing benefit across the board.

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  • 152 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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