The current rate of Capital Gains Tax at 18% is likely to increase to 40%, or even as much as 50%, in the Government’s first budget on 22nd June.

This increase will potentially affect the amount of profit that property investors can make on sales. This has led to many analysts predicting that there will be a rush in sales and many individuals may speed up their plans to sell assets prior to this date in order to take advantage of the current lower rate.

James Hyman, a partner at Cluttons estate agents, told The Guardian: “There has been a noticeable level of increase in the number of landlords coming to us to ask about selling their buy-to-let properties, with some choosing to actually put them on the market to avoid the potential Capital Gains Tax liability.”

It will be part of a radical package of tax reforms agreed by the new Conservative-Liberal Democrat coalition Government.