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Surge to sell ahead of CGT allowance dropping to £3k?

Journalist: Ruby Hinchliffe, The Telegraph

ended 01. December 2023

Are clients worried about the CGT allowance dropping from £6k to £3k next April? Are they selling properties earlier than planned to take advantage of the £6k allowance while it still stands? What are you advising them to do?

2 responses from the Newspage community

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Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
We aren't seeing this with properties as in reality, the CGT difference between a £6k and £3k allowance is minimal when many landlords would be realising gains way in excess of this.

However, we are actively helping clients manage their CGT positions within stock market based investment portfolios as there is more flexibility to strategically time sales, realising gains up to the allowance and sometimes losses which can then be carried forward to offset in future years.
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Elliott Culley
Director at Switch Mortgage Finance
Many landlords are looking to sell their properties in the current economic climate. They have already taken a hit with increased tax implications and some have much higher costs from current mortgage rates. The last thing they want is to be hit by a CGT allowance drop. I have an increase in first-time buyers, looking to purchase properties from their existing landlords. Most have been given timeframes to these clients that they want to complete before the end of the tax year.