Landlords are becoming increasingly concerned about a possible rise in Capital Gains Tax after a report from the OTS (Office of Tax Simplification) as well as discussions in government over the last few months.
The concern is that a tax rise could cause problems in the rental market with renters not having the current availability of different properties and would also serve to reduce the flexibility of the market to adapt to the changes we’ve seen with coronavirus.
There has been a shift out of city centres in some parts of the country, changing the demand in towns and villages and with further disincentives for landlords to invest and manage properties, the market could see a depression.
Many landlords’ principal motive in the buy to let market is to create a secure retirement, so any increase in Capital Gains Tax could negatively affect them.
The NRLA has said that there better ways to approach tax in rental market rather than just more tax increases.
Ben Beadle, NRLA chief executive, says: “Increasing Capital Gains Tax would reduce churn in the rental market undermining the flexibility it has always been good at providing.
“A tax hike would be a kick in the teeth for all those who have invested in property to provide security for the future for themselves and their families.
“The Chancellor needs to end the war on the rental market and recognise the importance of a healthy and vibrant rented housing sector. Tax should be used more smartly, not as a blunt attack on the market.”
This prospect has raised it’s head a number of times over the last few months and has perhaps only been delayed by the current events.
We’ll keep an eye on it.
If you have a large property or HMO you currently let or just planned to let, but with all the uncertainty in the market, you are considering your options, don’t hesitate to give us a call. We specialise in these types of properties and can help you to evaluate your options.
Call 0161 850 5588 or email info@armisteadproperty.co.uk
Thanks for reading
Peter Armistead
Founder, Armistead Property
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