HovelinHove Posted June 23, 2010 Share Posted June 23, 2010 May have been suggested in other threads, but haven't seen it. Personally, I think the Chancellor got it right on CGT yesterday. If he'd introduced a rate of 40% to be effective from next April, he'd have been blamed for crashing the housing market. This way, however, he gets money from all those who are selling now. Some might even say this will cause the market to hold firm as BTL people will want to make more from the sale of properties, so hold out for extra cash, but what if those BTL investors got the idea in their head that Tories and Libdems did a deal, and that the CGT rise is being secretly staggered? Osbourne surprised everyone by making it effective immediately, why couldn't he surprise everyone by introducing a higher rate next April, or even the April after? This way his personal chums who are in property now will have time to get out, while the rest will get shafted next year. Just an idea, but one worth discussing with amateur landlords…wouldn't want them feeling to comfortable would we! Quote Link to comment Share on other sites More sharing options...
Angela Posted June 23, 2010 Share Posted June 23, 2010 I totally agree with that idea, I think he is going to up a few more things in Setember/April or whenever it is, including cgt. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted June 23, 2010 Share Posted June 23, 2010 May have been suggested in other threads, but haven't seen it. Personally, I think the Chancellor got it right on CGT yesterday. If he'd introduced a rate of 40% to be effective from next April, he'd have been blamed for crashing the housing market. This way, however, he gets money from all those who are selling now. Some might even say this will cause the market to hold firm as BTL people will want to make more from the sale of properties, so hold out for extra cash, but what if those BTL investors got the idea in their head that Tories and Libdems did a deal, and that the CGT rise is being secretly staggered? Osbourne surprised everyone by making it effective immediately, why couldn't he surprise everyone by introducing a higher rate next April, or even the April after? This way his personal chums who are in property now will have time to get out, while the rest will get shafted next year. Just an idea, but one worth discussing with amateur landlords…wouldn't want them feeling to comfortable would we! I`m sure his personal chums are "out of property" about three years ago? IMO "getting out" for the masses (asses?) except at firesale prices is no longer an option, the good ship "Equity" sailed a long time ago. Quote Link to comment Share on other sites More sharing options...
Alfie Moon Posted June 23, 2010 Share Posted June 23, 2010 Yep, and further cuts in Housing Benefit. HB is a prime target with it costing more than the entire Police and Universities budgets combined and its association with the 'benefits scroungers' culture, etc. Also, the more informed BTL'ers will be well aware that the HPC was/is not dependent on BTL and CGT (the rise in CGT just helps matters along) and that the Budget did not replenish or replace the various props (eg SLS and CGS Schemes) used by New Labour to hold up house prices - hence the longer they hold on to their BTL properties the less they will get for them when they do sell. Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted June 23, 2010 Share Posted June 23, 2010 May have been suggested in other threads, but haven't seen it. Personally, I think the Chancellor got it right on CGT yesterday. If he'd introduced a rate of 40% to be effective from next April, he'd have been blamed for crashing the housing market. This way, however, he gets money from all those who are selling now. Some might even say this will cause the market to hold firm as BTL people will want to make more from the sale of properties, so hold out for extra cash, but what if those BTL investors got the idea in their head that Tories and Libdems did a deal, and that the CGT rise is being secretly staggered? Osbourne surprised everyone by making it effective immediately, why couldn't he surprise everyone by introducing a higher rate next April, or even the April after? This way his personal chums who are in property now will have time to get out, while the rest will get shafted next year. Just an idea, but one worth discussing with amateur landlords…wouldn't want them feeling to comfortable would we! Yep. I agree. The Conservatives have always said that CGT should be the same as income tax, to avoid tax evasion. CGT will probably go slowly upwards, in some of the next budgets, towards 40%. And the new 50% top rate of income tax will probably go back down to 40% also, within this Parliament. Quote Link to comment Share on other sites More sharing options...
Dave Spart Posted June 23, 2010 Share Posted June 23, 2010 (edited) There's more pain to come. Too much bad news yesterday might have sparked a revolt among the supporting vested interests. Doubtless you will remember a few weeks ago, during the hiatus of the hung parliament before the coalition was formed, the media constantly told us that one false move by our politicians could result in all sorts of market turmoil for the UK. The politicians had to tread carefully then, and yesterday to satisfy other interests, they had to tread carefully then too. Edited June 23, 2010 by Dave Spart Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted June 23, 2010 Share Posted June 23, 2010 (edited) Yep, and further cuts in Housing Benefit. HB is a prime target with it costing more than the entire Police and Universities budgets combined and its association with the 'benefits scroungers' culture, etc. Yes, LHA will now be aimed at the 30th percentile, instead of at the 50th as it was before. This will push down rents - year after year, after year... Also, the more informed BTL'ers will be well aware that the HPC was/is not dependent on BTL and CGT (the rise in CGT just helps matters along) and that the Budget did not replenish or replace the various props (eg SLS and CGS Schemes) used by New Labour to hold up house prices - hence the longer they hold on to their BTL properties the less they will get for them when they do sell. Do you have any more news about that? If so, it would be most useful if you could start a new thread on it - if there isn't a thread about that already. (I will look for it now, and if I find one, I'll post a link here.) Edited June 23, 2010 by Tired of Waiting Quote Link to comment Share on other sites More sharing options...
Confounded Posted June 23, 2010 Share Posted June 23, 2010 May have been suggested in other threads, but haven't seen it. Personally, I think the Chancellor got it right on CGT yesterday. If he'd introduced a rate of 40% to be effective from next April, he'd have been blamed for crashing the housing market. This way, however, he gets money from all those who are selling now. Some might even say this will cause the market to hold firm as BTL people will want to make more from the sale of properties, so hold out for extra cash, but what if those BTL investors got the idea in their head that Tories and Libdems did a deal, and that the CGT rise is being secretly staggered? Osbourne surprised everyone by making it effective immediately, why couldn't he surprise everyone by introducing a higher rate next April, or even the April after? This way his personal chums who are in property now will have time to get out, while the rest will get shafted next year. Just an idea, but one worth discussing with amateur landlords…wouldn't want them feeling to comfortable would we! That was my interpretation of the reasoning behind yesterdays CGT announcement. He know there are so many other subtle but crucial props that are holding the market up that he can fiddle with without people realising. Quote Link to comment Share on other sites More sharing options...
HovelinHove Posted June 23, 2010 Author Share Posted June 23, 2010 Glad we're all agreed on this. I think it's worth spreading the rumour that this is what he has in mind, as it will help crystalise those losses (our gains) faster. And yes, I agree, HB will go down to a max of £250 a week IMO. £400 a week is a joke, and the Tories know this. They did enough yesterday to show they mean business, but they will be doing a lot more in the future too. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted June 23, 2010 Share Posted June 23, 2010 The new higher rate will also affect some basic rate taxpayers whose gains if treated as income would take them into the 40% tax bracket. Quote Link to comment Share on other sites More sharing options...
Dave Spart Posted June 23, 2010 Share Posted June 23, 2010 (edited) It would seem Moneyweek agree with the sentiment in this thread: MoneyWeek: Why the real Budget pain is still to come. (As posted on the News Blog by Damien). Edited June 23, 2010 by Dave Spart Quote Link to comment Share on other sites More sharing options...
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