Buy_to_Let Tax Anger _ Capital Gains Tax

Buy-to-Let tax proposals have not been changed under new Capital Gains Tax changes that start in April.  Brokers and lenders are angry that the government have excluded buy-to-let investors from the 10 per cent Capital Gains Tax rate for entrepreneurs due to be introduced on 1 April.  

Small firms would pay just 10 per cent Capital Gains Tax on their first £1m, gains in excess of £1m will be taxed at a flat rate of 18 per cent, replacing the existing taper relief system.  But the 8 per cent relief for entrepreneurs does not include landlords.  

Our view

This is not all bad news for buy-to-let landlords, they will benefit from the move away from the taper relief system, under which they currently pay Capital Gains Tax at a rate of between 20 per cent and 40 per cent.  This change to capital gains tax rates falls into line with many EU nations and was inevitable.

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