Landlords could face 90,000 capital gains tax bills under labour's proposed tax changes

Landlords in the UK could see capital gains tax rise significantly if Labour's proposal to align it with income tax rates is enacted, resulting in much higher bills.

Rachel Reeves acknowledged the tough choices required to manage the £22 billion budget deficit, revealing prior cuts that generated significant savings amidst proposed tax increases.

David Fell of Hamptons emphasized how inflation impacts the real value of capital gains, making the proposed tax alignment problematic for those selling properties bought years ago.

While aligning capital gains tax with income tax rates might seem equitable, the reality is that many landlords might find themselves paying taxes on nominal gains due to inflation.

Read at Business Matters