Buyers pull fast one at CGT deadline

Pub buyers took advantage of the changes to capital gains tax (CGT) last week by dropping offers at the final moment, a major pub agency has revealed.

Savvy purchasers cut offers by up to £15,000, putting sellers of high-value freeholds "over a barrel" and unable to argue for fear of stalling deals and being hit by the changes, which came into effect on Monday 7 April, the first trading day of the new tax year.

Under the reforms, sellers of assets worth more than £1m will be hit by a flat-rate tax of 18%. Capital gains of less than £1m will be subject to a 10% rate, after sustained pressure from small business groups.

Property agents have reported an extremely busy period with a huge number of deals pushed through before the deadline. Some also coordinated deals ahead of scheduled changes with "unconditional exchanges" subject to a delayed completion.

Graham Allman, of GA-Select, said: "The changes have brought on an incredibly busy period in the licensed property market with several agents, including my own, reporting record levels of sales.

"While none of our buyers pulled a fast one, I certainly thought it might happen."