Investors 'will see capital gains tax rise'

Investors who have used their private wealth to purchase real estate are likely to see an increase in the capital gains tax this year.

This is according to editor of Property Investor News Richard Bowser, who said that he is ’absolutely convinced’ the levy will rise in the forthcoming Budget.

Predicting an increase to 25 per cent from the current level of 18 per cent, he explained that a change is unlikely to have any short-term effects on the property market.

’Quite frankly it will have relatively minimal effect,’ he remarked, reminding those who hold property investments that the rate was only reduced to 18 per cent relatively recently, as it was as high as 40 per cent in 2008.

He argued that it is a ’fact of life’ that people will have to pay more tax, adding that they should not get too ’hung up’ about it.

Mr Bowser was commenting following a recent report from Cluttons, which said it has seen a jump in the number of long-term investors trying to sell their London properties before the end of March in an attempt to avoid the predicted increase.ADNFCR-2318-ID-19633932-ADNFCR