Hints of a possible rise in Capital Gains Tax (CGT) in the March budget have provoked a flurry of selling of buy to let properties.
While CGT does not apply to sales of owner-occupied residential properties, it does apply to sales of homes let to generate rental income. Buy to let properties are currently subject to CGT at 18%.
Sales of buy to let properties have been particularly strong in central London, where an estimated 60% of properties are second homes or buy to lets.
If a hike in CGT is announced, holders of buy to let mortgages have until the end of this tax year on April 5th to sell a property, before the rise would come into effect.
