Newsroom
Budget 2010
Date posted: 24/03/10
James Hyman, partner for residential sales at property consultants Cluttons, comments on the Chancellor's decision to keep Capital Gains Tax at a flat rate of 18% and the implementation of 5% stamp duty on properties over £1million:
"Keeping capital gains tax at a flat rate of 18% may seem like a boost for the property market, but this is still going to create great uncertainty going forward. With the UK facing the prospect of a great deal of belt tightening in the coming years, there will now continue to be the fear of the prospect of a hike at some point in the near future.
"We expect this uncertainty to create an uplift supply in the property market this year as some second homeowners and investors look to sell sooner rather than later in order to take advantage of the current CGT rate of 18%.
"Raising the stamp duty threshold to 5% for properties over £1million is unlikely to dampen demand at this level of the market as a 1% increase will make little difference to buyers at this level who tend to be less price sensitive."
James Hyman
020 7407 3669
james.hyman@cluttons.com
