Mortgage brokers 'support Budget'

23 June 2010

Written by Michael Aglony

Mortgage intermediaries have welcomed the decision to limit the capital gains tax (CGT) to 28 per cent, research has revealed.

A survey commissioned by lender Kensington has found that 46 per cent of brokers believe this move is important in reducing the impact on the private rented sector.

The duty has been increased from 18 per cent to 28 per cent but has been capped below the level of income tax - a measure many intermediaries have backed.

Charles Morley, head of sales and product development at the firm, said: "We are confident that today's announcement will have minimal, if any, lasting impact on the buy to let market."

However, the Royal Institution of Chartered Surveyors warned that the combination of CGT increases and a hike in VAT could have a negative effect on the growth of the industry.

Kensington's study asked for the views of 300 intermediaries in the two weeks leading up to the Emergency Budget and found that 41 per cent of respondents wanted to see tapered relief from the duty.

Although this proposal was acknowledged by chancellor George Osborne in his speech yesterday, it was rejected to minimise costs and keep the legislation simple.

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