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Osborne Said He Will Not Back Down On Cgt On Property

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http://uk.finance.yahoo.com/news/budget-2010-george-osborne-to-press-ahead-with-capital-gains-tax-rise-tele-bcd25f0e9337.html?x=0

Budget 2010: George Osborne to press ahead with Capital Gains Tax rise
Rosa "Rosalind" Prince, Political Correspondent, 13:33, Monday 21 June 2010
George Osborne, the Chancellor, will risk a confrontation with his backbenchers after vowing to press ahead with a rise in Capital Gains Tax (CGT) in tomorrows emergency Budget.
He said he would not back down in the face of growing anger from Tory MPs, business leaders and the housing sector over the Liberal Democrat-inspired move to bring CGT into line with income tax.
He used an interview two days before his Budget to say CGT was used by the rich to avoid paying income tax rates of 40 and 50 per cent.
While he hinted that small firms would be spared, he failed to mention the other concessions that many are relying on to sweeten the pill, such as relief for those who have held investments for years or exemptions for the elderly.
Treasury insiders said these remained on the table, as fears grew that the Chancellor had adopted wholesale the Lib Dem proposal to pay for an income tax break for lower earners by a substantial rise in CGT.
Simon Rubinsohn, of the Royal Institution of Chartered Surveyors, said: Our research indicates that an increase in the rate of CGT is likely to deter new investors from entering the buy-to-let market, at a time of acute shortage of affordable accommodation.
:D:D:D
John Redwood, the senior Conservative MP who has led the campaign against a CGT rise, called on Mr Osborne to reduce it to 10 per cent in order to
encourage entrepreneurs
.

Perhaps Osborne is not that bad after all. If he goes after the property speculators and the BTL parasites we may see some decent downward action in the market sooner than expected. Perhaps he has been reading the overwhelmingly negative comments in the press about multiple home owners and BTLers escaping higher taxes through brown's 18% incentive to keep HPI driving the economy.

Edited by Realistbear

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http://uk.finance.yahoo.com/news/budget-2010-george-osborne-to-press-ahead-with-capital-gains-tax-rise-tele-bcd25f0e9337.html?x=0

Budget 2010: George Osborne to press ahead with Capital Gains Tax rise
Rosa "Rosalind" Prince, Political Correspondent, 13:33, Monday 21 June 2010
George Osborne, the Chancellor, will risk a confrontation with his backbenchers after vowing to press ahead with a rise in Capital Gains Tax (CGT) in tomorrows emergency Budget.
He said he would not back down in the face of growing anger from Tory MPs, business leaders and the housing sector over the Liberal Democrat-inspired move to bring CGT into line with income tax.
He used an interview two days before his Budget to say CGT was used by the rich to avoid paying income tax rates of 40 and 50 per cent.
While he hinted that small firms would be spared, he failed to mention the other concessions that many are relying on to sweeten the pill, such as relief for those who have held investments for years or exemptions for the elderly.
Treasury insiders said these remained on the table, as fears grew that the Chancellor had adopted wholesale the Lib Dem proposal to pay for an income tax break for lower earners by a substantial rise in CGT.
Simon Rubinsohn, of the Royal Institution of Chartered Surveyors, said: Our research indicates that an increase in the rate of CGT is likely to deter new investors from entering the buy-to-let market, at a time of acute shortage of affordable accommodation.
:D:D:D
John Redwood, the senior Conservative MP who has led the campaign against a CGT rise, called on Mr Osborne to reduce it to 10 per cent in order to
encourage entrepreneurs
.

Perhaps Osborne is not that bad after all. If he goes after the property speculators and the BTL parasites we may see some decent downward action in the market sooner than expected. Perhaps he has been reading the overwhelmingly negative comments in the press about multiple home owners and BTLers escaping higher taxes through brown's 18% incentive to keep HPI driving the economy.

My best hope is that he just announces it tomorrow, but to be effective from April 2011. Then we will have time enough for selling pressures to push prices down.

But if Osborne makes it effective immediately, then how would this will push prices down?

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My best hope is that he just announces it tomorrow, but to be effective from April 2011. Then we will have time enough for selling pressures to push prices down.

But if Osborne makes it effective immediately, then how would this will push prices down?

It would put a halt to further BTL and multiple home buying. Demand would slump.

For those that have to unload their properties because of the higher IR to come and mor e unable to pay rent (job losses in pipepline) they will feel the pain.

Osborne may actually have a plan to stop the boom and bust that Brown actualy made worse by lowering CGT and incentivising property investment.

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My best hope is that he just announces it tomorrow, but to be effective from April 2011. Then we will have time enough for selling pressures to push prices down.

But if Osborne makes it effective immediately, then how would this will push prices down?

I think we are all hoping for the same. Even announcing it coming in in, say, October would be better as it would cause a panic now over the Summer.

I suppose, if he increases personal tax from April of next year and raises CGT immediately, then some of the rich will want to sell up now to avoid any future CGT being added on to a newer higher rate of personal tax. In other words, sell before the end of this financial year in April.

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Simon Rubinsohn, of the Royal Institution of Chartered Surveyors, said: Our research indicates that an increase in the rate of CGT is likely to deter new investors from entering the buy-to-let market, at a time of acute shortage of affordable accommodation.

So BTL landlords are now providing reduced cost housing out of the goodness of their hearts are they?? Never have I heard such rot!!! mad.gif

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It would put a halt to further BTL and multiple home buying. Demand would slump.

Yeah, OK, I can see that, in terms of reducing the incentive for further, future BTL investment. I was just assuming that BTL was dead already, but I am sure you are right, and I am wrong here, as there are always many more fools out there than I remember to consider. :)

For those that have to unload their properties because of the higher IR to come and more unable to pay rent (job losses in pipepline) they will feel the pain.

Osborne may actually have a plan to stop the boom and bust that Brown actualy made worse by lowering CGT and incentivising property investment.

Yes, I agree. But if allowed some time for this "unloading", then we would see a much stronger downwards pressure on prices. ut I am probably hoping for too much, politically for Osborne.

I said it was my best hope though.

Hold on, about the political aspect, if Osborne allowed these 9 months before implementing the rise, he could even dress that as a "concession" for property owners, "giving them time", out of Osborne's "good heart" :P .

Now it is your turn not to doubt the gullibility of many! :lol:

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I wonder if he's thinking "We've got to trash house prices, lets get it over with".

I do hope so.

Hopefully they have realised Obama's mistake was not being tougher at the start and hence being able to put the blame on Bush.

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Government needs to give a clear signal, that speculation is bad, productive investment is good. Won't be surprised if the speculators get left off the hook though. They seem to have friends in high places.

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Guest BetterOffOnBenefits

They should just show that clip tomorrow when Osborne addresses the BTL scumlords laugh.gif

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Guest BetterOffOnBenefits

Thank god David Davis wasn't elected Tory leader...and John Redwood is a dung brain.

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Over 80% of our debt is index linked, we can't inflate wages to rebalance the housing market.

We can't increase wages in real terms because Chindia would just suck up all the jobs.

So there is no choice but to deflate the housing market to get it back to an even keel.

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http://uk.finance.ya...0e9337.html?x=0

Budget 2010: George Osborne to press ahead with Capital Gains Tax rise
Rosa "Rosalind" Prince, Political Correspondent, 13:33, Monday 21 June 2010
George Osborne, the Chancellor, will risk a confrontation with his backbenchers after vowing to press ahead with a rise in Capital Gains Tax (CGT) in tomorrows emergency Budget.
He said he would not back down in the face of growing anger from Tory MPs, business leaders and the housing sector over the Liberal Democrat-inspired move to bring CGT into line with income tax.
He used an interview two days before his Budget to say CGT was used by the rich to avoid paying income tax rates of 40 and 50 per cent.
While he hinted that small firms would be spared, he failed to mention the other concessions that many are relying on to sweeten the pill, such as relief for those who have held investments for years or exemptions for the elderly.
Treasury insiders said these remained on the table, as fears grew that the Chancellor had adopted wholesale the Lib Dem proposal to pay for an income tax break for lower earners by a substantial rise in CGT.
Simon Rubinsohn, of the Royal Institution of Chartered Surveyors, said: Our research indicates that an increase in the rate of CGT is likely to deter new investors from entering the buy-to-let market, at a time of acute shortage of affordable accommodation.
biggrin.gifbiggrin.gifbiggrin.gif
John Redwood, the senior Conservative MP who has led the campaign against a CGT rise, called on Mr Osborne to reduce it to 10 per cent in order to
encourage entrepreneurs
.

Perhaps Osborne is not that bad after all. If he goes after the property speculators and the BTL parasites we may see some decent downward action in the market sooner than expected. Perhaps he has been reading the overwhelmingly negative comments in the press about multiple home owners and BTLers escaping higher taxes through brown's 18% incentive to keep HPI driving the economy.

Well who knows? I think Osborne is a big light in the charisma department and, to someone of my advancing years, he does look like a 'boy' ... but maybe in 5 years we'll all be saying what a great chancellor he is.

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Simon Rubinsohn, of the Royal Institution of Chartered Surveyors, said: Our research indicates that an increase in the rate of CGT is likely to deter new investors from entering the buy-to-let market, at a time of acute shortage of affordable accommodation

For the love of God :rolleyes:

Is he trying to suggest BTL supplies affordable accomodation??

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We can't increase wages in real terms because Chindia would just suck up all the jobs.

I find comments like that baffling.

Which jobs are they going to suck up. Our manufacturing sector tends to produce either high end, specialized kit - or makes things like cars in start of the art, automated factories.

There are millions and millions of jobs that have to be done here - this idea that if we inflate they would suck up 'all' the jobs is surely wide of the mark. They already have taken some jobs - and some they have taken have come back. If anyone has a problem with inflation pricing themselves out of the market, currently, it is China. Plenty of Africans yet to be exploited.

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Over 80% of our debt is index linked, we can't inflate wages to rebalance the housing market.

We can't increase wages in real terms because Chindia would just suck up all the jobs.

So there is no choice but to deflate the housing market to get it back to an even keel.

Quite so. And yet John Redwood's answer to the problem of affordability is rising wages (see his blog on house prices).

Therefore as in the post previous to the above, John Redwood is indeed a dung brain.

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2 other factors in play:-

Bank Loans for BTL:- Have "words" been had, eg banks told to stop offering them?

Rates:- How much & how quick can they rise?

I suspect they want to "soft kill" BTL's..............

Mike

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Someone cut and pasted an article in another thread which stated that 160k people pay CGT of any description. There are roughly 44-45 million voters. Osborne, therefore, has done the calculation and knows full well that he can afford to say 'fook 'em' and hike CGT anyway. Even if every one of those 160k people never vote Tory again, the effect will be negligible (especially as most of them are probably concentrated in Tory strongholds with double digit percentage majorities anyway).

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There is no way CGT will be implemented mid tax year. It makes it ridiculously complicated to calculate. Unless they combine it with a new rule to simplify the calculation. It will commence from April 2011. It's just whether or not he allows for concessions on property speculators or not.

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we can't inflate wages to rebalance the housing market.

I've been thinking about that for a while now as it is the most critical element to determine how HPs move next. One thing that bothers me is that I think it is standard practice for multi year corporate supply contracts to be indexed to RPI or RPIX.

Can anyone confirm, and would it be the same for employment contracts?

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I find comments like that baffling.

Which jobs are they going to suck up. Our manufacturing sector tends to produce either high end, specialized kit - or makes things like cars in start of the art, automated factories.

There are millions and millions of jobs that have to be done here - this idea that if we inflate they would suck up 'all' the jobs is surely wide of the mark. They already have taken some jobs - and some they have taken have come back. If anyone has a problem with inflation pricing themselves out of the market, currently, it is China. Plenty of Africans yet to be exploited.

If you have a moment, please tell me one single type of product that we do and China can't do (cheaper).

I am eagerly waiting to be convinced.

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If you have a moment, please tell me one single type of product that we do and China can't do (cheaper).

I am eagerly waiting to be convinced.

You need to ask yourself why we are the 6th largest manufacturing economy in the world.

Surely if it just about cheap labour, we would have lost ALL our manufacturing jobs 20 years ago.

Yet, and it bears repeating, we are the 6th largest manufacturing economy in the world.

You won't be convinced though - you have your world view and that's it as far as you are concerned.

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I've been thinking about that for a while now as it is the most critical element to determine how HPs move next. One thing that bothers me is that I think it is standard practice for multi year corporate supply contracts to be indexed to RPI or RPIX.

Can anyone confirm, and would it be the same for employment contracts?

You're either still at school or have no experience of commerce.

The bigger the corporate - the easier it is for them to make the 'Hi Bill, times are tough, we need to renegotiate your contract' call.

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  • 140 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% +
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      • Even
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      • up 5%



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