Landlords looking to sell

Landlords rush to sell before tax breaks halved

Landlords in the UK are rushing to sell their properties before tax breaks on investment profits are cut in half. The annual capital gains tax allowance is falling to £3,000 at the start of the new tax year, down from £6,000 this year. Higher mortgage rates and punitive property taxes are wiping out potential profits for landlords, leading to an "avalanche of landlords selling" in the coming year. Property investors in the higher-rate tax bracket pay 28% on any capital gains they make outside of the allowance when they sell a home. This presents an opportunity for first-time buyers to purchase properties at reduced prices. The tax changes will also affect investors selling shares, who will be forced to pay more. Experts advise investors to act quickly to avoid missing out on potential gains.