Fears that the Chancellor could use the budget this month to increase capital gains taxes has spurred panic selling off stocks and property. Investors have moved to lock into the current capital gains tax rate of 18 percent. The business community is thought to believe that the Chancellor has ruled out the increase because of a possible backlash. The Treasury has conceded that the gap between the 18 per cent capital gains tax rate and the 50 percent income tax rate rate has resulted in some "strange incentives" but the chancellor believes that the political and economic climate are not conducive any corrective action.

The rise in property prices appears to be levelling off with an increase of only 0.1 percent in the first half of March 2010. The Rightmove House Price Index only moved £229,398 to £229,614. This was attributed to the increase in the number of properties being offered for sale.Miles Shipside, commercial director of Rightmove, said: "The majority of property price indices will show some further rises this spring, as they reflect the recovery from the weather-induced dampener on turn-of-the-year sales and subsequent mortgage activity.This appears to have bucked up a few lenders' ideas too. More have decided to get competitive in the 10 per cent deposit arena, which powers the all important first time buyer (FTB) market."

Meanwhile,  HSBC has taken the lead in the discounted variable-rate mortgage market with the only offering available below two percent for two years. The rate is 1.99 percent for two years with a fee of £999 and an LTV of 40 percent. The minimum advance is £250,000 and is free of legal fees in England and Wales.

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