Returning back from the holidays, you may have heard a rumour that landlords will have their capital gains taxed as income. You will be relieved to hear it was just that and HM Treasury has quickly come out to clear up any confusion for worried landlords.
Landlords across the country will be delighted to hear that their capital gains won’t be taxed as income after all as HM treasury clarified this wouldn’t be part of the new Finance Bill.
The more cynical landlords would be forgiven for thinking that water was being tested to see what the reaction would be. Judging by the fury unleashed on social media, adding this further tax increase wouldn’t have been too popular.
According to Property118.com, the HM Treasury has provided written assurances to landlords associations that they didn’t intend to cause confusion with the wording in the bill and buy to let landlords won’t have their capital gains taxed as income.
The standard capital gains tax rate on residential property is currently 18% and the higher rate is 28%. Fortunately, it looks like this will remain the case and there will be no increase to 40% which is what many thought HM Treasury was trying to say in the Finance Bill.
If you are concerned about property and tax or have any other questions about managing your property, please contact a remember of our team.