Capital Gains Tax
 

How many of you will fall foul of the new policy of raising CGT on the sale of 2nd properties from 18% to 40% or 50%?

As Norman Tebbit once said "get on your bike to find work", which is exactly what I did 2.5 years ago, and now I have 2 properties I'm going to get shafted.

No you're not. You will only have to pay tax on the difference between what you paid for the property and what you sell it for, if you sell it. If you don't sell then it makes no difference. In the meantime you, and all the other people who own more than one house, have reduced the availability of houses so pushing up the price for people who haven't even got one. But never mind that, you just have a good old moan about how hard done by you are and concern yourself not about how you are 'shafting' other people.

Alternatively....perhaps by buying a house and making it habitable to rent out to some of the many people who currently cannot get mortgages M25 WAR has actually done a service to the community Fred;)

There has been no announcement saying it will be 40-50%....as that nice Mr Cameron says, no policy decision has yet been made....:)

Zeb, I'm busy this morning but will respond later. Needless to say I don't agree with your first bit. :)

Not many people do agree with Zeb's bits ;)

Have they Taxed Zeb's bits to now? ;)

Just would like to point out that many of the houses that have ended up as investments as opposed to homes for first time buyers have been rather run down properties that were acquired at auctions.

A great number of these properties were then let to DSS tenants.
I have many clients who own just a few properties and are not making a great deal on money on their investment.

A large number of these investment properties are in areas where first time buyers do not want to live. Where these properties are in areas of social deprivation the only people who want and can buy houses are the private landlords. They then rent out the properties to local people who are usually on benefits. Also in these areas there is usually a lack of adequate social housing, the option to 'get on their bikes' is just not a reality.

Before judging me, maybe you should ask for the facts!

Circumstance has dictated that I have 2 properties, a house in Wales that I've owned for 9 years, and a flat in Herts that I've owned for 18 months.

I took up a new job in Herts at the end of 2007 as things in South Wales weren't looking very positive and we rented a flat for a year to see how things were going to pan out. During that year the recession hit big time and as a result interest rates were slashed and it then made more economic sense to buy a flat rather than rent.

I am not a property investor, just someone who's trying to provide for his family as best he can and further my career. Being in the construction sector my job has not been secure for the past 18 months, and will remain so for at least the next 12 months. Should the axe fall on my job, which is an ever present possibility I will be forced to sell the flat.

I have taken a risk buying a 2nd property, as the depth of the recession at that time was still unknown (and maybe still isn't), but for me it was a simple question of economics.

Yes we do not yet know the detail of what the changes to capital gains tax are, but to raise it to the levels that the media are speculating about seems crazy to me!

My point is that the general perception of capital gains tax is that it only affects the rich, but being mortgaged up the hilt I certainly don't fall into that category. We are just an ordinary family on an average income, trying to make the most of the opportunities that come our way!

Unless the rules of Capital Gains change under the new government, as said tax is paid on the difference between buying and selling price, plus you can deduct anything spent on enhancing the property and the buying price is enhanced by inflation so reducing the tax bill even more.

Plus the fact if you dont sell ther is no tax, but of course if you rent out that income is taxable

After 13 years of fiscal mismanagement it's hardly suprising our already disproportionate tax rates are forecast to get a whole lot higher! :shrug: