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CGT could rise

publication date: Jun 2, 2010
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Caroline Kavanagh “Have they gone mad?” asks Caroline Kavanagh of Badger Holdings as the Government signals a 22% rise in Capital Gains Tax.
As the Coalition Government sets to work to reduce the financial deficit, the possible rise in CGT is unnerving for the buy-to-let market. Caroline Kavanagh, Group Lettings Director for Badger Holdings, parent company to Townends and Regents estate agents, says, “Firstly, have they gone mad? The buy-to-let market has kept many businesses going through what has and continues to be, a difficult financial climate. With demand already outstripping supply, the industry is in need of more investors coming to the table not the complete opposite.

Ultimately, even if they had a choice, not everyone wants to buy a property. If this rise in CGT goes ahead many tenants could potentially be left fighting for properties as landlords are forced to sell up leaving not enough available stock. The rental industry plays a big part in estate agency and the economy, why therefore run the risk to collapse it?”