So finally the dreaded emergency budget that has caused such a hush throughout the property market since the General Election is over and we all now know exactly where we stand. But how will this impact us as individuals with regards to buying and selling? Turning first to the interest rates – The bank rate should remain pegged at 0.5% until early next year, according to the markets. With the economic recovery fragile, the Bank of England would be unwise to begin hiking interest rates in 2010 say economists. The greater threat to low rates could yet come if international markets reach the conclusion that Britain might not be able to cope with its debts. In that nightmare scenario, investors would demand a greater interest rate on government debts, pushing up other consumer rates. And the pound would plunge, importing inflation which would heap on pressure for a central bank rate rise. The good news is that the emergency Budget was well received by markets with the pound strengthening. The next concern for most people was the suggestion that Capital Gains tax would shoot through the roof. Considering the widely trailed, and bitterly contested, suggestions of what could happen to capital gains tax, investors should thank their lucky stars. In the end it turned out to be quite simple: CGT is up to 28% for higher rate taxpayers with immediate affect. This was a substantial let-off for investors, landlords and second homeowners who had expected CGT to rise to 40%, or even 50% for the highest earners. They had also been forecast a cut in the CGT-free annual allowance, which would have proved a double whammy. The worst case scenario was CGT up to level with higher rate tax and annual CGT-free allowances slashed. And it all to come in immediately. A 28% rate of CGT for higher rate taxpayers may seem a hefty hike on the current 18% flat rate, but the use of the annual allowance and Isa allowances can help ease tax bills for those selling shares and funds and married couples and civil partners can double up for £20,200-a-year in gains tax free. Buy-to-let landlords already get a big tax break in the ability to offset mortgage interest against income tax on rent, and second homeowners who rent our properties also get a chunky tax break, so we don’t have too much to complain about after all. The budget obviously caused a storm in other sectors but hopefully for those of you hoping to step on the property ladder for the first time the news was better than hoped and for investors its seems there’s not such a panic after all!