As our new fresh faced, or should that be 'fresh two faced', Government sets about reducing the deficit I can't help but wonder why middle England must (yet again) absorb the brunt of tax increases. That is of course if their main rise is to come from a hike in CGT as reported. This 'not so stealth' tax would appear to be aimed specifically at the buy-to-let market.
As someone who recently entered this market I must admit, when I think about why I decided to buy let properties, at being a bit perturbed. After scare stories galore about the state of pensions in the UK and their overwhelming requirement for stable stock markets (no I've never seen one either) I felt I should invest in property, build up a small portfolio and see that as my pension fund. I wonder how many people think like me and now may have to hand over a big chunk in tax because middle England,as usual, is the easiest target.
There is a clear distinction to be drawn between hard working and entrepreneurial individuals and those who have two homes as a luxury. Yet that distinction has not been taken into account from what we read. It really is smoke and mirrors from our new coalition Government. When I said 'not so stealth' earlier what I should have referred to was a 'misdirection tax'... 'quick look over there at those wealthy individuals with their second homes, we're going to tax them, hoorah for your new look Conservative-ish Government. What? Urm yes.... those hard working middle class individuals saving for their futures and trying to get ahead in life, or those who need a second home for work, will get caught up in the net. Never mind!'
Maybe I'm getting ahead of myself but I guess an awful lot of people in the lettings industry will approach the emergency budget with increasing trepidation. Yes we may have to cut the deficit, and we should live within our means as a country but that burden should be applied in proportional amounts and not directed at the Landlords who have made the economy tick for years, built up a valuable UK industry and substantially improved the living conditions for many tenants - all against the backdrop of a housing shortage. When the country needed a solution to its housing crisis buy-to-let landlords were the white knights on mighty steeds; now the Government would have us believe they are fat cats on piggy banks who must pay more.
