Autumn statement predictions

[Pleurotus]

Additional 3% stamp duty on new build scrapped.
Minor tinkering of clause 24 but no reversal.
CGT on property reduced to 20%.

[kingofnowhere]

Hi

You beat me!

Mark

[richlist]

CGT already starts at 18%
Are you suggesting an increase ?

[TedSwippet]

CGT already starts at 18%. Are you suggesting an increase ?

http://www.rossmartin.co.uk/tax-guides/110-capital-gains-tax-rates-a-allowances

CGT rates of 10% and 18% introduced for disposals on or after 6 April 2016 do not apply to transactions involving residential property or carried interest. CGT rates for these transactions remain at 18% and 28%.

[Pleurotus]

I actually meant CGT reduced to 10% and 18% but didn't look it up in my haste to beat KoN to the first post!

Seems a no brainer to me. Get the market moving, help first time buyers, plus (I'd guess) create more tax revenue. Unless I do a MrTed10* and move abroad, my CGT planning is for it to die with me and not pay it at all via IHT allowance.

Although I don't think Hammond will do it this time -safe pair of hands, keeping it steady and all that. But he knows the property business and I'm sure he has his eye on it. Keeping his powder dry for the right moment I reckon.

*Is that you TedSwippet?

[DiamondEcho]

New stamp-duty levels are toxic, bad for the economy [and society!] and the complete opposite of the Tebbit [if you can't find work locally] Get on your bike and move to find it'.
Politicians take time to accept their mistakes, and due to pride and vanity often too long. The mistakes in ramping S-D if not addressed this year will be in due course, as soon as they're comfortable not showing themselves up as the fools who legislated for it not so long ago.

[WandleHens]

I actually meant CGT reduced to 10% and 18% but didn't look it up in my haste to beat KoN to the first post!

Seems a no brainer to me. Get the market moving, help first time buyers, plus (I'd guess) create more tax revenue. Unless I do a MrTed10* and move abroad, my CGT planning is for it to die with me and not pay it at all via IHT allowance.

Genuinely interested to know how this is going to work in practice. IHT allowance will currently only take you to £650k if you are a couple , the additional nil rate for family home is only available if you leave family home to offspring & is being phased in as follows;

£100,000 in 2017 to 2018
£125,000 in 2018 to 2019
£150,000 in 2019 to 2020
£175,000 in 2020 to 2021

My home is already above the IHT max & as I don't have kids my estate won't benefit from the additional family home allowance. If CGT is lowered, I'll use the opportunity to release my additional property holdings.

[TedSwippet]

Unless I do a MrTed10* and move abroad, ... *Is that you TedSwippet?

No, apparently a different "Ted". (Though moving abroad is also on my 'tentative planning' list.)

[Pleurotus]

WandleHens,

AIUI, I will be able to leave £1M tax free (with some index linking thereafter) plus a few other bits and bobs. I reckon that is generous enough for my beneficiaries and I don't intend leaving much more if I can possibly help it.

Horses for courses, attitude to risk, personal circumstances and all that but can't you release some of equity in your home and blow the lot on beer and fags or whatever?

[Naughtyweasel]

I think CGT reductions are FAR more likely than SD reductions. There are thousands of long term BTL investors who would like to sell but high CGT is putting them off. A reduction to the "normal" CGT rates could seriously free up some real estate.

NW

[TopOnePercent]

I quite agree about the CGT reductions being more likely than cuts to SD. Easier to get some of the one property to let group to sell up and do something else - even though it will further depress supply of rental property, causing more problems for the young via rent increases.

There's been talk of given the Boomers some carrots to downsize rather than using a big stick. If they're to vacate the family homes they no longer need to increase availability for younger families, then they'll not do so without some distinct benefits. I'd suspect there may be something in the autumn statement, even if it doesn't activate until next year.

Absent a large scale building program, which won't happen because we can't afford the infrastructure that would be needed with it, I view the budget as nought more than tinkering at the edges of property markets. I remain decidedly unconvinced about any large scale reductions in property prices and suspect it will simply continue to rise until somewhere around the 7-8 times earnings level, which is reflective of former 3.5 times earnings the market was priced at prior to double incomes becoming the societal norm.