'Seismic' Tax Change To Hit BTL Landlords

Financial penalties due to ‘seismic’ changes to Capital Gains Tax (CGT) payment rules could heavily impact people selling buy-to-let properties. From April 6, anyone who disposes of a residential property giving rise to a capital gain on which CGT is payable will be required to make a digital return to HMRC and to pay an estimate of the CGT due within 30 days from the sale completing. People will also no longer be able to benefit from a possibly substantial sum of money remaining in their hands for up to 22 months after residential property disposal. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/landlords/seismic-tax-change-to-hit-btl-landlords.html

Exempt Rural Landowners From CGT

The extension of right-to-buy to housing association tenants has served to discourage rural landowners from making sites available for new affordable homes, according to country business lobby CLA. The organisation, which represents landowners, farmers and rural businesses, has told a cross-party group of MPs that landowners have the potential to inject life into rural areas by making land available to house young families, local workers and older people seeking to downsize or retire. The CLA is calling for the Government to encourage landowners to release land at a discount for affordable housing by exempting the value of land sold for affordable homes from Capital Gains Tax. Read more on Housing Excellence.

Knock Down Barriers To Build More Affordable Rural Homes

The CLA which represents landowners, farmers and rural businesses told a cross-party group of MPs that landowners have the potential to inject life into rural areas by making land available to house young families, local workers and older people seeking to downsize or retire. But the organisation warned that government policies such as extending the Right to Buy to housing association tenants discouraged landowners from making sites available because the homes would become unaffordable in the future. The CLA is calling for the government to encourage landowners to release land at a discount for affordable housing by exempting the value of land sold for affordable homes from Capital Gains Tax. Read more on 24housing.

Buy-To-Let Landlords Denied Tax Break

Buy-to-let landlords have been denied a tax break on their property profits as the Chancellor excluded them from a big capital gains tax cut. George Osborne announced in the Budget that he is significantly cutting the rate of tax paid on capital gains - but not for investors who are selling property - at the same time as he confirmed a stamp duty hike for second homes but gifted homebuyers extra help. Landlords will continue to be stung with a hefty 28 per cent capital gains tax bill when they sell up. Residential property was deliberately excluded from the tax cut that will see investors in other types of asset benefit from the higher rate of capital gains tax being reduced from 28 per cent to 20 per cent, while the basic rate will be reduced from 18 per cent to 10 per cent. Read more on the Daily Mail website.

Property Tax Reform Could Encourage Landlords To Sell To Private Tenants

A new report has indicated that the Chancellor should help generation rent to own their current properties through the reform of Capital Gains Tax. The report into Britain’s property taxes reveals that taxation reform could be key to tackling housing crisis.

·         Reform of Capital Gains Tax could allow 100,000 private tenants to own rented homes.

·         Current tax system is a disincentive for landlords looking to sell their properties.

·         Tax relief should be given to landlords selling properties to existing tenants.

The report says that the Chancellor should use his budget to deliver and then stick to a clear property tax policy, to give private tenants, home buyers and investors the clarity, certainty and predictability they need for future stability and growth. Download the report from the RICS website.

Buy-To-Let Investors: 'Let Us Off Capital Gains Tax And We'll Sell 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 Residential Landlords Association (RLA), 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. Read more on the Daily Telegraph website.

Time for a Landlord Tax

In an age of austerity landlords have made £177 billion in capital gain alone over the past five years. On top of this they have received £30-40 billion in rent a year, including about £9 billion a year in Housing Benefit. Landlords are able to outbid owner occupiers who don't realise a cash return in the same way, making the housing market skewed in their favour. They get Mortgage Interest relief that isn't available to homeowners, many loopholes for releasing capital gain without paying Capital Gains Tax, and a special landlord tax break called the "Wear and tear" allowance. When they're making so much money, we don't think they should be getting such huge taxpayer subsidies. Read more on the Generation Rent website.

'Tax to Tackle London Bubble'

George Osborne is considering slapping new taxes on foreign property investors in an effort to tackle what many see as a house price bubble in London and the South East. The Chancellor is actively investigating imposing capital gains tax on foreign owners of British property at the Autumn Statement in December. The Treasury has already provisionally costed the measures and is awaiting a final decision from Mr Osborne in the coming weeks. While those living in Britain have to pay capital gains tax (CGT) of 18% or, more commonly, 28%, if they make a profit when reselling all but their main home, non-resident property owners are currently exempt for all their properties. Read more on Sky News.