23 Apr

Tax changes 'have not hit buy-to-let'

Tax changes 'have not hit buy-to-let'

Changes to capital gains tax rules have not resulted in buy-to-let investors leaving the market, it has been claimed.

The Royal Institution of Chartered Surveyors said that such suggestions were "misplaced" and in fact the sector is in good health.

Simon Rubinsohn, chief economist at the organisation, noted that a small proportion of landlords are looking to reduce their portfolios when existing deals finish.

"Only two per cent of landlords are currently planning to sell properties at the expiry of tenant leases. The incentive to cash in on the lower tax rate is being outweighed by attractive yields," he commented.

Because first-time buyers are finding it difficult to get on the housing ladder, he added, more are entering the rental sector and rents are "rising".

A single tax rate of 18 per cent for all kinds of investment was recently introduced by the government, replacing various forms of taper relief.ADNFCR-1222-ID-18564730-ADNFCR

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