Earlier this week I wondered whether the government’s proposal to raise Capital Gains Tax (CGT) on the sale of second homes would raise any money considering the inevitable losses in related taxes, like a drop in income tax caused by landlords exiting the business.
Sure enough, reporting in the Times late-Wednesday suggested that chancellor Rachel Reeves will likely limit any rise in CGT to share sales “amid concerns that increasing it [on the sale of second homes and buy-to-let properties] would cost money.”
Residential property is unlikely to get away scot-free, however.
STAMP DUTY
The Conservatives increased the “nil rate” threshold for paying stamp duty from £125,000 to £250,000 and from £300,000 to £450,000 for first-time buyers.
Those thresholds will revert back from March, the paper reported yesterday evening.
The government also intends to fulfil its manifesto pledge to increase the SDLT surcharge on foreign buyers.
The paper suggests it’ll rise to 3%, from where it currently stands at 2%.
Liam Bailey is Global Head of Research at Knight Frank
