Chancellor John Healey is tipped to ignore landlord leaders’ calls to reform Capital Gains Tax at next week’s Budget.
The National Residential Landlords Association called for “a fairer Capital Gains Tax system that recognises inflation and rewards long-term investment would help rebuild confidence in the sector and support the supply of rental homes.”
In particular the NRLA claims that between 2015 and 2024 just one-fifth of the increase in house prices represented real-terms gains, with the rest attributable to inflation.
Yet a landlord selling up would have CGT levied on the entire gain.
To create a fairer system, the NRLA demanded CGT apply only to genuine gains, not gross increases in property values.
However the mainstream media – thought to be acting on government leaks – says Healey will leave Capital Gains Tax unchanged next week.
The Times is reporting that Healey will make no changes.
There have been calls from within the Labour Party in recent months for a rise in the tax.
Cabinet ministers Louise Haigh and Wes Streeting both spoke of raising CGT before Andy Burnham became prime minister.
The Budget will be delivered next Wednesday.
This article is taken from Landlord Today