More taxation for landlords and investors

broken egg
Sep 24 2019

More taxation for landlords and investors

More potential tax for Buy-to-let landlords. Private landlords could soon be paying more capital gains tax following new proposals put forward by the Institute for Public Policy Research (IPPR). Why do other investments not attract the same level of taxation as buy to let properties? Is it not time that the governments of this land realise it is time for a culture shift?

If the proposed capital gain tax increases go through, do those in power not realise that the tenant ultimately suffers as landlords will increase rents to maintain their yields. It was reported that last month rents in the UK hit an all-time high of £970 a month. What do people expect? Landlords are not in the buy to let game for charitable reasons.

We have already seen numerous tax changes over the last two years, the government cannot expect to be able to keep hiking on the taxes and expect no repercussions.

Or is this the plan all along? Get landlords to sell up then have to pay Capital Gains Tax, no matter that there will be increased homelessness.  

It seems to be working, the latest figures from HM Revenue & Customs show CGT at £9.2bn last financial year.

Although CGT applies to gains made from the sale of assets such as second properties and stocks and shares, people selling additional properties pay CGT at 18% at the basic rate and 28% if a higher taxpayer. 

The IPPR believes that CGT rates on investment sales, second homes and buy-to-lets should be increased to income tax levels. Potentially, it would lead to a massive increase in taxes being paid, but long term would investors take their money overseas?

How does this apply to companies that own buy to let rather than individuals?

It seems that the government has a hole in its budget, and this could generate an additional £120bn over five years.

The IPPR claims that this proposal is fairer than the current system?

Would this new change in tax be the last straw for you as a landlord?

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