[ad_1]
Gains are vanishing amidst rapidly falling house prices. Property values fell at their fastest annual pace for 14 years last month, according to the latest house price index from Nationwide.
Realised gains will be even less than the headline selling prices as landlords offloading properties this year face not only a market downturn but also a smaller tax-free allowance.
The capital gains tax allowance was slashed from £12,300 to £6,000 in April and will fall in half again to £3,000 after April 2024.
A landlord paying 40pc income tax and selling their property this year for £94,800 more than they bought it for will now lose £24,864 of their profits to the tax office, compared to £23,100 in 2022.
Official figures show that 139,000 taxpayers reported 151,000 property sales in 2022-23, triggering charges worth £1.8bn.
Some 6pc of investors in Hamptons’ analysis sold their buy-to-lets for less than they bought them for.
Beveridge said: “With around 35,000 landlords coming off fixed-rate mortgages each month, the upward pressure on landlords’ costs marches on.
“In the run up to remortgaging, landlords are fighting to balance the books by paying down debt and hiking rents that have dropped below market rate.”
[ad_2]