Real Estate
UK Landlords Face Higher Taxes on Home Sales Despite Hunt’s Budget Relief
- Chancellor to trim higher rate of capital gains tax from April
- Separate cut in tax-free allowance to negate benefit: Hamptons
Homeowners in the UK generally do not pay capital gains on their main residence, so the changes will mainly affect private landlords and second homeowners.
Photographer: Betty Laura Zapata/BloombergThis article is for subscribers only.
Almost all British landlords selling homes from April will end up paying more tax on their profits despite a cut to the capital gains levy announced by Chancellor Jeremy Hunt this month.
That’s because the tax reduction in Hunt’s Spring Budget pledge won’t benefit sellers when an annual personal tax-free allowance has also been shrinking at the same time, according to a report from broker Hamptons International. Some 89% of sellers belonging to a higher tax-rate group will see their capital gains tax bill rise from 2022 levels, along with all lower-rate payers, the report said.