Landlords hit out at proposed Capital Gains hike
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Private landlords are calling on the government to scrap any plans to raise Capital Gains tax.
Letting agent Upad’s rental confidence survey revealed worries over the proposed increase despite a majority feeling confident in the market.
One landlord declared himself “appalled” at the proposals while another claimed the buy to let market would become much less attractive.
Of 257 UK landlords surveyed 54% felt more confident in the market with many highlighting the improvement on last year.
James Davis, Upad’s CEO, says: “The new government now has the opportunity to help landlords play their role in the UK housing market effectively and efficiently – or it can leave it to stagnate under over-regulation and increased taxation.
“Private rentals will be crucial to the UK housing market in the coming months, as job cuts come into effect and local councils grow even less able to cope with the demands put on social housing. Landlords can help bridge this gap – but only if they are given adequate support by those in power.”
Readers' comments (5)
Anonymous | 11 Jun 2010 11:04 am
Boo hoo! Please don't increase the tax on my UNEARNED income to be the same as the tax the proles have to pay on their EARNED income. I provide a service doncha know! What are renters supposed to do if landlords sell up (apart from buy property at reasonable levels).
Seriously guys, the government knows it needs your housing equity. HTey will take it directly via CGT or indirectly by removing props for the housing market. By letting prices fall, the younger generation will get cheaper housing and thus can be taxed more. The government can't afford for housing wealth to be frittered away on luxurious retirements for the property-is-my-pension brigade. Besides, you don't have to sell, as you can live off the rental income, right?
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RMBS_Trader | 11 Jun 2010 11:16 am
"has the opportunity to help landlords play their role in the UK housing market effectively and efficiently – or it can leave it to stagnate under over-regulation and increased taxation"
Err... the BTL Landlord IS playing their role by having a more stagnant (indeed, declining) market to improve affordability.
People won't like anything that hurts their pocket, but the market remains over heated and still has room for decline. Landlords are frankly a better target than the general one-home-owning populace for the reversal of years of property value excess...
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Anonymous | 11 Jun 2010 12:05 pm
In addition to what RMBS_Trader says, landlords have played their role by offering properties with rents which are 50-60% of what the interest on an 80% LTV mortgage would cost. When the figures add up this way, this is where we move from invenstment to speculation. The majority of landlords are now speculators, hoping for massive capital gains to fund retirement, as opposed to relying on rental income. Again, sorry guys, the equity is fictitious and will disappear as the herd heads for the exit.
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Anonymous | 11 Jun 2010 3:10 pm
I think the issue is a little wider than just Buy to Let. CGT effects many in different ways including share dealing. CGT is not just about landlords its about other earnings too and might I add is already taxed. Think about it, if I am a landlord do you think I am now going to sell my property if the rate is hiked? The answer is simply NO... Why? because the gain to be made across rental income over a longer period is much better than paying CGT... So what will happen? Savvy landlords will not sell property and the government will not get extra money!.... I personally think the gains are more targeted at the share dealing aspect where money changes hands on a regular basis and is much easier to track after decleration of earnings. Its not a personal dig at landlords, but remember we seem to have a blame society here where everyone else has to pick up someone elses misfortune? Why because some laywer somewhere gets a pay day!..This country has become very weak and those who do prosper seem to have to foot the bill for many underacheivers not to say everyone is but we always want to blame someone else.
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Ancient Wisdom | 14 Jun 2010 9:06 am
Landlords have been responsible for alot of property purchases in the UK, pushing up prices and reducing stock for First time buyers - the other side to this is that landlords will be now put off as property may not be such a good investment, thereby offloading stock - increasing supply and therefore, prices could fall faster than predicted.
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