The planned rise in capital gains tax (CGT) is dominating the headlines amid fears it will induce panic selling.

The new coalition government's planned hike in CGT from 18% to 40% or 50%, has sparked opposition from second-home owners, people who have bought to let and property investors who fear they are going to be hit hard by the new tax.

Experts advise property owners not to panic and warn that a stampede of second home panic sales would have a very detrimental effect on the market. Their greatest concerns lie with the buy-to-let sector which is more financially driven.

For second home owners, even when taxed at 40%, property still does better than all other competing investments which are also subject to the same GCT rates. Additionally, CGT was 40% until 18 months ago, so I doubt it will be much of a shock to the system.

There always appears to be concerns over what might be around the corner and, as in previous situations, worst-case scenarios which include the words 'retrospective' often tend to be based upon unfounded fears.

For more advice on any property matters, please contact :

Hamilton Chase,
141 High Street, Barnet EN5 5UZ
0208 441 1123.