22/02/2008
Capital Gains tax changes spell good news
for Landlords.
Following the pre-Budget report in October last year, Chancellor
Darling has confirmed changes to the way capital gains tax will
be calculated.
Capital gains tax (CGT) will change from April 1 2008. The introduction
of the single band tax of 18% will create a simple system and
bring the rate for businesses and non business assets more in
line with each other.
Good news for Landlords
This is great news for buy-to-let.
Landlords pay CGT on the difference between the price they paid
for the property and the price they sell it for. As it stands,
the tax rate is 40% for the first three years of property ownership,
falling by 2% a year to a minimum rate of 24% after 10 years
of ownership.
The new system means that the length of time a property has
been owned will be irrelevant. The capital gains annual exemption
will continue to apply which (in 2008/09) will mean the first
£9,200 of the gain is exempt.
This is clearly great news for landlords who will see a significant
reduction in tax should they decide to see a property.
07/02/2008
The Bank of England’s Monetary Policy Committee
today voted to reduce the official Bank Rate paid on commercial
bank reserves by 0.25 percentage points to 5.25%.
06/12/2007
The Bank of England’s Monetary Policy Committee
today voted to reduce the official Bank Rate paid on commercial
bank reserves by 0.25 percentage points to 5.5%.
22/11/2007 - Home Information Packs required for one and two
bed properties:
From the 14th December 2007 properties marketed
for sale in England and Wales will need a Home Information Pack
(HIP), which includes a home energy rating. The Pack includes
an Energy Performance Certificate, containing advice on how
to cut carbon emissions and fuel bills. Also included are documents
such as a sale statement, searches and evidence of title.
October 2007
4th October 2007: Bank of England Base rate to
remain at 5.75%, the next review is scheduled for the 8th of
November 2007.
September 2007
Smaart Associates launch their newly designed interactive
website. To compliment the new site additional services have
been added, including a low cost legal service with HIPs and
a host of new interactive calculators have been incorporated
into the site.
8 February 2007
Bank of England Maintains Bank Rate at
5.25%
The Bank of England’s Monetary Policy Committee today
voted to maintain the official Bank Rate paid on commercial
bank reserves at 5.25%.
The Committee’s latest inflation and output
projections will appear in the Inflation Report to be published
on Wednesday 14 February.
January 2007:
Home Information Packs (HIPS) Amendments:
The Government has announced further changes to the Hips system,
which comes into effect in June 2007. Properties that go on
the market before the Home Information Pack implementation date
will now be able to stay HIP-free until March 2008 rather than
the original October 2007 as previously suggested. The government
believe that this amendment will reduce massive demand for the
production of packs in the first weeks of June.
Additional amendments to the legislation include,
which the Government describe ad "transitional" include:
- Sellers will now be able to market their property as soon
as an Energy Performance Certificate and key legal documents
are provided as long as searches and leasehold documents have
been "commissioned".
- Base Rate Increase: The Bank of England's Monetary Policy
Committee voted to raise the official Bank Rate to 5.25% on
the 11th January 2007.
May 2006:
House prices rose sharply in May, ending the month up 0.6% according to Hometrack.
Monetary Policy Committee Decision: Bank of England Base Rate to remain at
4.50% this month.
July 2006:
HIPS Update:
Home condition reports will not be included in the controversial Home Information
Packs, due for compulsory introduction on June 1st 2007.
Housing minister Yvette Cooper said that the Government still wants home condition
reports, the most hotly-contested new requirement, to be introduced at some
stage. But she admitted that the system requires further testing. and there
were also concerns that there would not be sufficient trained inspectors to
cope with the demand if the reports were included in the main launch of the
packs in June 2007.
Monetary Policy Committee Decision: Bank of England Base Rate to remain at
4.50% this month.
June 2006:
House prices rose 0.3% in June according to Nationwide Building Society.
Monetary Policy Committee Decision: Bank of England Base Rate to remain at
4.50% this month
December 2006:
The Bank of England’s Monetary Policy Committee voted to keep the official
Bank Rate at 5.0%.
Smaart Associates Winter 2006 newsletter is now available to download: The
Mortgage Newsletter - PDF document
November 2006:
The Bank of England’s Monetary Policy Committee today voted to raise the
official Bank Rate paid on commercial bank reserves by 0.25 percentage points
to 5.0%.
October 2006:
Bank of England Base Rate to remain at 4.75% for the second months in a row.
House prices increasing:
The Department of Communities and Local Government
has recently released results of its house price index, which shows that the
average house price in the UK has increased from £194,454 in July 2006
to £197,631 as at August 2006.
September 2006:
Monetary Policy Committee Decision: Bank of England Base Rate to remain at 4.75%
this month.
August 2006
The Bank of England has increased interest rates by a quarter of a percentage
point to 4.75% in an effort to keep inflation in check..
