A recent survey of almost 2,000 landlords, commissioned by property lending experts Octane Capital, found that 41% of landlords want to see a reversal of the Government’s proposed changes to Capital Gains Tax (
CGT) allowances.
The Chancellor Jeremy Hunt announced plans to reduce the CGT tax-free allowance from the current level of £12,300 to £6,000 from 6 April 2023 and then a further reduction to £3,000 from 6 April 2024.
The survey revealed that confidence in the buy to let (
BTL) sector remains robust, despite the Government’s continuing drive to reduce the returns available, the ban on Section 21 evictions and the onerous requirements to improve EPC ratings.
Nonetheless, Jonathan Samuels (the CEO of Octane Capital) stated that it “
appears as though the exodus of landlords from the rental sector has been somewhat over exaggerated with just a small proportion opting to reduce the size of their portfolio in 2022”.
Jonathan Samuels went on to say that “
while we’ve seen a degree of stability return following a shambolic mini budget last September, many buy to let investors remain cautious about the year ahead.”
However, when landlords were asked which proposed Government legislative change they would most want to see reversed, the proposed reductions to the CGT tax-free allowance came top of their list.
Clearly, maintaining a profitable BTL business remains challenging for so many landlords up and down the country and any associated tax is a cost that should be managed with careful planning.
Newhams Tax Advisers are property tax experts and advise BTL landlords and property investors on how to legally structure their affairs to ensure the tax costs involved in running, acquiring and selling a property and/or property portfolio are minimised.
Often BTL landlords and property investors are totally unaware of the range of allowances, reliefs and forms of restructuring which can make significant reductions to the tax costs involved.
If you would like to schedule a free no obligation call with one of our property tax experts to see if you may be able to reduce your property tax or CGT costs, then call or email us as follows:
Tel: 0800 211 8657
Email:
enquiries@newshams.com
Website:
www.newshams.com
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