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Capital gains tax changes announced

The Chancellor has announced changes to capital gains tax in the pre-budget report.

Grant Sutton head of property and construction, Clare Jacob, said, €œThe move to a single rate of capital gains tax at 18 per cent is great news for shareholders in property investment companies who previously were able to reach an effective rate of
24 per cent, but bad news for their counterparts in property dealerships, whose rate increases by eight per cent, given that previously they could reach an effective rate of ten per cent.

€œAlthough this will not damage the market, it means that life just got more expensive for dealers and costs will most likely end up being passed on to the buyer.€