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Currently DevDosh Ltd discovered how experts within the world of pensions are claiming that the next ‘pension crisis’ could be being caused by the over reliance on buy-to-let properties, this is thought to be due to many investors miscalculating the amount they will be taxed when selling the property.

This will not come as good news to many UK property investors who see a buy-to-let investment as the perfect way to plan for retirement and bolster their state pension.

The government has made changes recently to the way that buy-to-let properties are taxed which could leave many UK citizens as much as 15,000 GBP per year worse off according to the latest figures from consumer market research.

This a problem of epic proportions when you take into account that a total of 77 (1.8 million people) percent of landlords say their property investment is also their retirement nest egg

This latest research which DevDosh Ltd found is in stark contrast to research from Mintel consumer market research with 7 out 10 people still believe buy-to-let as the sure fire way to save for retirement.

In DevDosh Ltd opinion if someone is unlucky enough to have a deficit of as much as 15,000 GBP this is no mean feat to recuperate as this is the equivalent of 300,000GBP in savings.

Richard Lambert, CEO at the National Landlord Association said: “As a consequence of government policy over recent decades almost two million people are reliant on their property to fund their later years, but the changing tax regime will substantially reduce the income they receive from these investments and so compromise the retirement plans of a significant number of hard-working people.”

The NLA is asking the Government to assist people affected to adjust their financial plans by tapering the amount of capital gains tax (CGT) landlords will have to pay when they plan to sell their property, based on how long they have owned and let it out for.

Richard Lambert added: “Landlords who have invested in residential property for the long term are different from short-term speculators who buy and develop properties, and this should be recognized when it comes to how much capital gains tax they pay when they decide to sell.

“It is not always in the best interests for landlords to continue to manage residential property into later life. A capital gains relief like we propose would provide an incentive to sell, allowing people to sell poorly performing properties and potentially purchase an annuity or invest in more liquid, lower risk assets to fund their retirement instead”.

For more information regarding property development finance investment as a first charge, please visit DevDosh Ltd today.