Landlords Corner – Are You Aware Of Forthcoming Capital Gains Tax Allowance Changes?
April is often challenging for landlords due to economic or regulatory changes, and April 2023 is set to be the same. One of the most significant factors landlords need to know about this year is the reduction in Capital Gains Tax allowance.
Chancellor Jeremy Hunt announced this measure in the 2022 Autumn Statement, with the current Capital Gains Tax allowance of £12,300 halving to £6,000 from April this year. In 2024, there will be a further reduction, dropping the Capital Gains Tax allowance to £3,000.
If you are a landlord looking to sell property in 2023, you’ll likely face a higher tax bill. We know how stressful it is to keep up to date with all these changes and how to minimise the impact of these changes, but Trading Places is here to assist you.
With so many things to keep on top of, this might seem like a step too far for some landlords, but with our help, you’ll know what to do next.
What are the Government projections for people being affected by these changes?
The Government has produced figures for the number of individuals they expect to be affected by these Capital Gains Tax Allowance changes:
· For the 2023 into 2024 tax year, 500,000 individuals and trusts are likely to be affected
· For the 2024 into 2025 tax year, 570,000 individuals and trusts are likely to be affected
Landlords should be aware that even if CGT isn’t payable, you must inform HMRC if a gain of at least £50,000 is made.
We know taxation is stressful for many landlords, but we’ve assisted many landlords on this and similar matters. If you want to plan, arrange an appointment, and we’ll go through your situation or property portfolio and discuss what these changes mean to you.
Some landlords will now decide against selling up rental property
Of course, the thought of paying more tax might be a factor which persuades you to remain in the rental market. There is significant demand for rental property, which isn’t going to diminish. This is the case across the country, but tenants are clamouring for rental property here in London and the Leytonstone rental market.
So, whatever you decide to do, or if you require guidance on what to do next, Trading Places is here to assist you. If you are a landlord who has had enough and you want to make the sales process as painless as possible, we can help. However, if you dislike losing money because of changes to Capital Gains Tax, why not allow us to assist you with property management services?
Either way, if you are looking for guidance on the Leytonstone rental market, or how you can achieve success by letting property in the capital, we are always here to assist you.
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