{"id":27314,"date":"2024-10-11T10:38:20","date_gmt":"2024-10-11T09:38:20","guid":{"rendered":"https:\/\/smh.group\/?p=27314"},"modified":"2024-10-11T11:23:30","modified_gmt":"2024-10-11T10:23:30","slug":"why-landlords-are-cashing-in-before-a-potential-cgt-hike","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/why-landlords-are-cashing-in-before-a-potential-cgt-hike\/","title":{"rendered":"Why Landlords Are Cashing In Before a Potential CGT Hike"},"content":{"rendered":"

Increasing tax rates is a common government approach to boost HMRC\u2019s revenue, but this might not hold true for capital gains tax (CGT), as taxpayers typically have greater control over when they choose to realise their gains.<\/strong><\/p>\n

The upcoming Budget at the end of October is widely expected to see a hike in CGT rates. However, recently published data from HMRC suggests that the 4% higher rate reduction from 6 April 2024 (28% down to 24%) on residential property disposals may have helped to increase tax receipts as landlords could be taking a good opportunity to sell up.<\/p>\n

For the five months to 31 August 2024, CGT receipts increased by nearly 10% compared to the year before.<\/p>\n

Take care to plan ahead<\/strong><\/p>\n

Compared to landlords, those with an investment portfolio have more opportunity for CGT planning since they have considerable flexibility over the timing of disposals. However, there is now somewhat less scope for basic CGT planning with the annual exempt amount cut to just \u00a33,000:<\/p>\n