Capital gains rise 'could boost property sector'
Property professionals
25th June 2010
A decision by the government to raise the capital gains tax threshold could be good news for those planning to enter the residential property sector.
This is the claim made by FirstRungNow.com managing director Helen Adams, who stated the move could make the market more competitive.
"As soon as they [the changes] become effective then many landlords may sell their properties, which may even serve to bring down prices a bit," she declared.
According to Mr Adams, first-time buyers could see more homes become available, although she acknowledged that a planned rise in VAT and spending cuts unveiled by chancellor George Osborne in his June 22nd emergency Budget speech could dent consumer confidence.
Residential property owners seeking insurance for buildings may be particularly interested in the announcement by Mr Osborne that capital gains tax should be adjusted as part of efforts to develop a fairer system of national levies so that those on low and middle incomes pay smaller amounts.
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