Tax burden
05/09/2008
According to research by The Mortgage Works, landlords who sold their properties in Q1 2008 faced high capital gains tax charges - £30,597 on houses and £30,241 on flats which, alongside cumulative income tax over the five year period - £4,298 houses and £4,362 flats - created a total tax burden of £34,895 on houses and £34,603 on flats.
In comparison, landlords who sold their properties in Q2 of this year, after CGT reforms saw a flat rate tax of 18% introduced, saw their tax burden fall by just under a half for houses, to £16,581, and just over a half for flats, to £15,975.
Figures from the Association of Residential Letting Agents' measuring landlords' desire to sell property also indicate that landlords continue to monitor a variety of market factors carefully when handling their portfolios.
