Edinburgh’s leading property solicitor Warners has given a cautionary welcome to the coalition Government’s decision to increase capital gains tax to 28% for high income earners.
Speaking after the announcement, Warners’ estate agency partner Scott Brown said: ““The expectation was that capital gains tax (CGT) would be increased massively, so today’s Budget announcement is actually something of a relief for the property sector. Although the rate has gone up, this increase is only for higher rate tax payers – which is correct in political terms – and even then, it is moderate enough to mean people will not stop selling or buying properties.
“If capital gains tax had gone up to 40 per cent, as some commentators predicted it would, it may have stopped some people realising the gains from their properties – which would have meant less money for the government as there’d have been no gains to pay tax on.
“It’s also a sensible move to impose the rise in CGT from tonight, as otherwise, if it had been announced as a measure to commence at a future date, it would have encouraged property owners to sell up quickly before the rise came into effect. The market would potentially have been flooded with property which would have had a hugely negative impact for the UK housing sector.
“There will always be some people who will see it as the end of the world and that more could have been done to help the property sector. We were all acutely aware that some action required to be taken to balance the UK’s books however, all in all, the action the Chancellor has taken in regard to CGT has been balanced and prudent.”
Warners, which has four property shops in Edinburgh, has been the Capital’s leading property solicitor in terms of property sales and listings for the past 11 years
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