A Cloud of Uncertainty

Are you looking to Sell Before Potential Capital Gains Tax (CGT) Rises?

It may be too late, so to future-proof your investments, consider Auction whenever you need to divest your property portfolio in the future.

As rumours swirl about a potential rise in Capital Gains Tax (CGT) in the Autumn Budget, set to be announced on October 30th, 2024, property investors may feel they are starting to face an uncertain future. Now, higher-rate taxpayers pay 24% when the property is sold, and some analysts predict this could increase to align with income tax, which could raise capital gains tax to 40% or even 45% for top earners.

While long-term investors with no plans to sell may be unaffected by future governmental changes, those looking to offload properties could see their profits shrink. With the continued uncertainty of other changes to the property market, including the upcoming Renters’ Rights Bill, which could abolish no-fault evictions, and the imposition of tighter regulations surrounding Environmental Performance Certificate (EPC) ratings for rental properties, investors who are looking to maximise their investments may want to act sooner rather than later.

Auction could be the best route for investors who want to act to mitigate future legislation.

Unconditional auctions provide sellers with a fast and secure way to exchange contracts and lock in their tax liabilities before any governmental changes. When the hammer falls at our Livestream Auctions, the contract is legally binding, and the seller becomes liable at the current rate. Auction sales are typically completed within twenty-eight days, potentially allowing sellers to close their sale before any tax increases are implemented. This means that even if the government does not go ahead with the rumoured changes, Auction will always be the quickest method of sale in uncertain times.

Another benefit for London landlords looking to sell is that properties don’t need to be in perfect condition to attract buyers. Many investors are on the lookout for properties with potential where they can add value after purchase.

From a buyer’s perspective, auctions present a unique opportunity to acquire tenanted properties that generate income immediately. Investors can snap up properties with development potential, allowing them to add value while earning rental income from day one.

So, consider Auction as a marketing route the next time you want to sell property or land. Contact us today to list your property in one of our three auctions, which will run for the rest of 2024.