Second homeowners panic over CGT rise.

The forthcoming review of capital gains tax (CGT) is causing panic amongst property investors who own more than one residence and shares. Second home owners are eager to get rid of their extra assets in a bid to escape the levy, according to the Times, which states the tax threatens the stability of the coalition government. Conservative backbenchers are fiercely opposed to the changes, which are part of Liberal Democrats' desires to rebalance the tax system. The CGT rate is supposed to be raised from its current 18 per cent to a level "similar or close to" income tax levels, but there are widespread fears that it could be increased to as much as 40 or even 50 per cent. According to the newspaper, there are more than 250,000 second-home owners in the UK and many could be caught out by the changes, which could come before the emergency budget on June 22, when they sell assets. It could also deter new landlords coming into the market.