Landlords decide not to take advantage of tax cuts
April 25th, 2008 by 
Guy
Many buy to let landlords have decided not to take advantage of this month’s Capital Gains Tax cut, says the Royal Institution of Chartered Surveyors.
Despite an introductionof a flat rate of 18% which was introduced on April 6. They reported claims that just 2% of landlords are now planning to sell properties on the expiry of tenant leases.The report was based upon feedback from its members on whether landlords had now decided to take advantage of the new more favourable tax .
Simon Rubinsohn, RICS chief economist, says: “Fears that landlords would take advantage of the more favourable Capital Gains Tax regime to bail out of the buy to let market appear misplaced.”
He says: “Significantly, with the reduction in LTV ratios by lenders leaving first time buyers struggling to access the housing market, rents are now rising sharply and the expectation is that this trend will continue.”
Landlords who previously sold their properties incurred CGT of between 24% and 40%.
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