“This will have no direct impact on the Home Report in Scotland but I would hope the Scottish Government would not follow suit.

 

“The launch of the report in December 2008 was mired with controversy, in part due to the state of the market at that time. However now, almost 18 months on, the harshest of critics have become some of its strongest advocates.

 

“The reports introduced clarity to the marketplace, streamlining the process of buying and selling therefore improving the housing stock and supporting the market through an undoubtedly difficult period.”

 

 

Colin Clark, agricultural partner at Pagan Osborne, advises to transfer or sell assets now in order to avoid changes in the Capital Gains Tax (CGT) allowance expected in the 22 June budget.

“At present, when property or assets are sold the CGT rate is 10% for business properties where the gain is up to £2,000,000 for those who qualify for entrepreneur’s relief and 18% for those who don’t. These rates are historically low. 

 

“It is possible that the rates for non-business assets will go up to 40% which they were until recently and the tax rate for business properties might also be increased. Those changes may either be introduced from the budget date or be delayed until the beginning of the next tax year on 6 April 2011. 

 

“The problem is we don’t know what changes are going to be introduced, but we do know that it is very unlikely that the rates will be reduced.  In its simplest form, CGT is paid whenever a property or other asset, for example shares or antique furniture, is sold or when those assets are gifted to a member of your family (but not spouse). CGT is paid on the difference between the current value and the price paid for the asset.  

 

“If a person’s assets have increased significantly in value since they were bought then, assuming they can afford to live without them, they could for example think about making a gift to a family member before 22 June to lock into the current relatively low CGT rates and reliefs.

 

“It would be a shame to wake up on 23 June and find the rates have increased significantly. It is worth remembering that as long as the contract of sale is completed, for instance concluding unconditional missives for the sale of a property, before the changes are introduced, then you are not liable for a changed rate as it is the date the contract is agreed which counts not the date when the buyer takes occupancy of the property which may be weeks or even months later.”