Expert 'convinced' about CGT rise

Wednesday, February 24th 2010

A rise in capital gains tax (CGT) has been predicted by an industry magazine.

Now at 18 per cent, CGT could rise to 25 per cent in this year's Budget, Property Investor News estimates.

Editor at the publication Richard Bowser said he is "absolutely convinced" that this change will occur.

"But the devil will be in the details in respect to allowances and reliefs," he claimed.

This rise will not have a huge impact in the short-term and with regard to investment property, the CGT has been at 40 per cent.

When it was this high, additional reliefs were available to claim for certain groups of people, Mr Bowser added.

Tax increases are "just a fact of life", he explained.

Mr Bowser's comments follow reports from Cluttons that many second home owners and long-term investors in central London have been putting their property on the market due to fears that CGT could increase in April.