Investors will profit from the reduction in capital gain tax, feel experts

Posted under Advice by Michael

Capital Gain Tax (CGT) will be 18 per cent from April according to Chancellor Darling. This fuelled speculation of turmoil in the market.

Steve Gilder of PricewaterhouseCoopers predicted pre-emptive sale on April 16 of buy-to-let property. So did numerous analysts. According to Lynsey Sweales of Money Centre, recent research shows that most of the buy-to-let landlords view their investment as a medium to long term scheme.

On other hand, Nineteen per cent intend to stay in the letting market for six to ten years. About twenty-two per cent hope to continue for eleven to twenty years. Only thirteen per cent might sell their letting property this quarter.

Ms Sweals said the rush to sell was unlikely as landlords want to hold on to their properties. The investor will profit from the reduction in capital gain tax ultimately, experts feel.