Buy-to-let investors: 'Let us off capital gains tax and we'll sell to first-time buye

[AtW]

Britain's biggest landlord trade body is urging the Government to waive capital gains tax where properties are sold to first-time buyers

Britain's biggest representative body for buy-to-let investors has proposed that investors should be given tax relief on the gains they make when selling their rental properties - in return for selling the properties to first-time buyers.

The proposal, made to chime with the Government's initiatives to increase home ownership, is likely to prove highly controversial.

That's because capital gains tax is one of the biggest tax hits on the buy-to-let sector, reaping billions for the Exchequer.

Because the buy-to-let industry has grown so fast, much of the capital gains tax laibility - running into tens of billions of pounds - is as yet uncrystallised.

The Residential Landlords Association, which represents around 40,000 private landlords, has suggested the Government could "encourage" landlords to sell their properties to tenants and first-timer buyers via tax incentives.

A survey of more than 1,500 investors found two in three would be "more likely to sell" if their capital gains tax liability was reduced.

If the liability was removed altogether, 77pc would consider selling.

Source: Buy-to-let investors: 'Let us off capital gains tax and we'll sell to first-time buyers' - Telegraph

AtW's comment -

[NibblyPig]

Why is this issue so tricky? Why not just put a tax on renting residential properties out where the landlord does not live in them?

[AtW]

Why is this issue so tricky? Why not just put a tax on renting residential properties out where the landlord does not live in them?

First they remove tax benefits.

Only then they add new tax.

HTH

[centurian]

The Residential Landlords Association, which represents around 40,000 private landlords, has suggested the Government could "encourage" landlords to sell their properties to tenants and first-timer buyers via tax incentives.

Err, I think the "encouragement" started in the July budget with the interest relief.

Now they're just in a flap that they can't bail out without incurring a tax charge on their profits.

[pjt]

Why is this issue so tricky? Why not just put a tax on renting residential properties out where the landlord does not live in them?

Landlords already get taxed on the profits they earn from the rent. This will soon increase to rent prior to profit don't you think that's enough?

[PurpleGorilla]

Landlords already get taxed on the profits they earn from the rent. This will soon increase to rent prior to profit don't you think that's enough?

No.

[vetran]

No. I want a free house unlike those filthy BTLs who saved for their house to rent.

I mean they bought them on the same market I could and then charged the same rent as everyone else but its So Unfair I want my mummy

FTFY

[vetran]

Err, I think the "encouragement" started in the July budget with the interest relief.

Now they're just in a flap that they can't bail out without incurring a tax charge on their profits.

Problem is they will all sell to Singapore investors and they all stand empty like the ones in the city.

[PurpleGorilla]

FTFY

Actually what I want is housing to be more affordable across the board and to remain affordable with tighter lending rules and regulations. Houses should be homes, not assets.

What I don't want is selfish boomers and wealthy foreigners to exploit the market for self gain, in doing so making it almost impossible for future generations to buy.

[pjt]

Actually what I want is housing to be more affordable across the board and to remain affordable with tighter lending rules and regulations. Houses should be homes, not assets.

What I don't want is selfish boomers and wealthy foreigners to exploit the market for self gain, in doing so making it almost impossible for future generations to buy.

Houses are affordable in many parts of the country. The focus as always appears to be on the South East! House prices haven't moved much in my area since 2007. And as far as I can see loads of empty houses sit on the market for a very long time nothing stopping first time buyers snapping these up.