As part of the pre-Budget report, CPT will be set at a flat rate of 18 per cent, rather than between 24 to 40 per cent, which is based on how long they have held the asset.
Andy Young, chief executive officer at The Business Mortgage Company, said: “Landlords currently pay between 40 per cent and 24 per cent depending on the length of time they have held the asset, therefore the overall investment return on BTL property will increase substantially. This is good news for the BTL market and is likely to encourage more people to consider the option of BTL as a good investment opportunity and a viable alternative to traditional stock market investments and pensions.’
Harry Katz, principal at Norwest Consultants, said: “With rental yields falling one wonders how this merry-go-round will fare. Personally I would like to see 50 per cent CGT on property sales, which may actually do something to make property more affordable for its prime purpose – as somewhere to live.”
