The landlords and savers racing to sell off their assets…amid looming threat of Labour’s capital gains tax raid.H
The landlords and savers racing to sell off their assets…amid looming threat of Labour’s capital gains tax raid
Landlords are preparing to dispose of homes and investors are set for mass sell-offs of their assets before Sir Keir Starmer can strip them of their gains via widely anticipated tax hikes in the autumn budget, financial experts have told MailOnline.
The Prime Minister sparked panic with a gloomy Downing Street speech on Tuesday, in which he warned Chancellor Rachel Reeves‘ upcoming budget would be ‘painful’, with ‘those with the broader shoulders’ expected to ‘bear the heavier burden’.
Labour committed to avoiding rises in income tax, national insurance and VAT during the general election campaign, paving the way for hikes on capital gains tax – a tax on the profit from second house sales and investments – and inheritance tax.
Financial experts have warned an increase in capital gains tax would be ‘the final nail in the coffin’ for landlords, as they accused Labour of sending hard-working Brits who have spent years building up savings and investments into a worried frenzy.
Financial experts have warned an increase in capital gains tax would be ‘the final nail in the coffin’ for landlords, as they accused Labour of sending hard-working Brits who have spent years building up savings and investments into a worried frenzy.
Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer are considering tax changes
But Sir Keir’s claims of a ‘dire’ inheritance from the Tory government have prompted concern among the middle classes who fear a tax raid is on the way.
Inheritance tax (IHT) in the UK is currently paid at 40 per cent on the value of estates above a threshold of £325,000 – which has not changed since 2009 – and there are additional allowances for transferring family homes to younger generations.
The Government may make some IHT allowances – which exempt assets like family businesses, farmland, woodland and pension savings – less generous.
Capital gains tax, which is currently charged at 20 per cent of the profits from the sale of assets, could be brought into line with income tax, which has a top band rate of 45 per cent.
All of this has prompted concern from an army of financial advisers, lawyers and mortgage experts – who predict mass disruption to the rental market and manoeuvres by investors to protect their finances.
Patricia McGirr, founder of the Repossession Rescue Network, which helps homeowners in financial distress, told MailOnline: ‘At a time when we need people to be more self-sufficient, we’re punishing those who’ve done just that. It’s a kick in the teeth.
‘The talk of Labour’s tax hikes
