CGT rise bad for investors, says RICS
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A rise in Capital Gains Tax will deter much needed private investment, says the Registered Institute of Chartered Surveyors.
Ahead of tomorrow’s emergency Budget RICS are advising the chancellor of the exchequer to introduce tapered relief based on the length of time buy-to-let investments have been owned.
Simon Rubinsohn, RICS chief economist, says: “Taper relief would fit with the business model that many people in the private rented sector use, where they own a property for several years before selling it to realise some of the capital value.”
A total of 72% of chartered surveyors believed a CGT rise would be bad for investors when asked in the RICS Housing Market Survey last month.
Only 11 percent believed it would have no effect.
In the West Midlands surveyors were unanimous in their disapproval of a CGT rise, with 82% in London, 72% in Wales and 58% in the North West.
RICS are also advising against a ‘slash and burn’ approach to public spending and asset stripping the UK economy.
Mark Goodwin, RICS director of external affairs, says: “The danger is that pressure for short term cuts and quick disposals will not achieve real value and will deplete the pool of professionals capable of delivering the best practice that is out there.”
