Property investors are facing renewed uncertainty regarding Capital Gains Tax (CGT) amidst growing speculation about possible changes in next month's Budget. Reports suggest the government is considering adjustments to CGT as it seeks additional revenue, potentially aligning it more closely with income tax.
This speculation comes as public finances are under pressure, with public sector borrowing reaching £18.3bn in August, which was £3.5bn above official forecasts. Susannah Streeter, chief investment strategist at Wealth Club, noted that "Tax speculation is ramping up ahead of the Budget."
For landlords and other property investors, any increase in CGT could influence decisions on when to sell assets. Streeter suggested that the prospect of a higher CGT bill might lead some investors to delay disposals. However, the government has not yet announced any changes to CGT.