Latest research from, Avelo, the UK’s leading financial services technology solutions provider, has underlined the extent to which Capital Gains Tax (CGT) remains a controversial topic. When asked whether CGT should be abolished as part of the forthcoming budget, half of advisers (50%) believe it should be scrapped. However, nearly as many (45%) are keen for it to remain part of the tax landscape, with 5% unsure which would be the best outcome.
The survey showed that slashing of CGT is viewed to have a potential benefit on the mortgage market, with more than one third (39%) advisers believing this would encourage investment in property and stimulate the market. A further third (27%) see the benefit from buy-to-let landlords releasing properties back into the market, increasing much needed supply.
Sophie Hall, Head of Intermediary, Avelo, commented: “CGT is always a controversial topic, so it’s telling to see that opinion is split down the middle, and I imagine views are heavily influenced by an individual’s situation. Scrapping CGT would provide a much needed boost to the mortgage market, which in turn, has the ability to stimulate UK growth significantly.
“When it comes to keeping the economy moving in the right direction, advisers are clearly conscious of the dilemma facing George Osborne, although they are experienced enough to know there has to be some pain before we can return to growth.”
As part of the poll carried out on Avelo Exchange, advisers were also asked about whether or not more cuts were needed to return the country to economic health. Nearly half (47%) agreed that such cuts are required, but only alongside a programme of infrastructure investment. A third (31%) disagreed, saying growth should be stimulated through spending and investment, whilst the remaining 22% agreed that clearing the debt should be the chancellor’s primary concern.
Results based on 155 users of Avelo Exchange poll carried out in February 2013.