Landlords adapt well to new capital gains tax

Despite recent increases to CGT, landlords sentiment remains positive. A recent landlord survey showed the following results:


34% of landlords saw the current market as attractive for investment - property still offers better capital returns than other investments – a drop of 7% since the last quarter.

Landlords with 3 properties made capital gains of £152,219 and face CGT bill of £39,793 – an increase of £11,369 from the previous tax regime (at higher rate tax paid over two years).

Landlords with just one property have made average capital gains of £75,111. If they sold their properties now, the average single property landlord would face a tax bill of £18,203 – an increase of £5,201 compared to before the budget.

Landlords with one property made capital gains of £75,111 and face CGT bill of £18,203 - an increase of £5,201 compared to before the budget.

The increased CGT hit many property investors' confidence. However the hike wasn't as steep as first feared, and we are already seeing landlords adapt their disposal strategies for their portfolios, planning to spread sales over several tax years to mitigate their exposure to the higher rate.