The government’s revenue-raising measure may impact the private rented sector (PRS), according to PayProp.
The firm noted that the upcoming Budget will likely provide clarity on the stamp duty holiday, Capital Gains Tax (CGT) and rent grants.
In addition, PayProp believes that the Budget will focus on the government’s response to the ongoing COVID-19 pandemic.
As a result, the rental payment provider outlined that it is thought the property market could be targeted as a means to raise funds to close the deficit.
As reported on 15 February, it is speculated that Chancellor Rishi Sunak is considering a six week extension to the stamp duty holiday.
Startup founders worried about proposed capital gains tax changes computerweekly.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from computerweekly.com Daily Mail and Mail on Sunday newspapers.
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Capital gains tax may be focused upon by Rishi Sunak soon as the Chancellor is forced to address public spending. Huge levels of debt have been built up in response to coronavirus and tax reform could be on the horizon to cover the costs.
Trending If the plan is to take profits and reinvest in other assets then it is probably a worthwhile course of action. But if there is no desire to sell, then the question would be, is it sensible to create a tax liability now when by continuing to hold the asset no tax would be payable for some time?
Ms Ross explained that there were still steps which could potentially be worthwhile to take.
This relates to making use of tax allowances which are currently available. It is worthwhile ensuring that all available tax allowances are fully used, she said.