A major boost to most investors through cutting Capital Grains Tax has been introduced.
On Wednesday 16th March 2016 Chancellor George Osbourne presented his budget Statement to the House of Commons. The statement essentially said that capital gains on residential properties would be subject to an 8% surcharge.
From next month, April 2016 Capital Gain Tax will be reduced rom 28% to 20% for higher taxpayers and from 18% to 10% for basic rate tax payers, while the first £11,000 remains tax free.
This budget will directly attack landlords and other property investors leaving their tax at the original higher rate. This is not the first budget cut that has negative connotations on landlords either.
Prior announcements include:
· 3% Stamp Duty Surcharge
· Removal of Mortgage Interest Tax Relief