Capital Gains Tax relief to encourage longer tenancies and sales to tenants in private rented housing, RLA response

October 9, 2018

Responding to proposals from the Conservative Think Tank, ‘Onward’ today for Capital Gains Tax relief to encourage longer tenancies and sales to tenants in private rented housing, David Smith, Policy Director for the Residential Landlords Association said:

“We welcome Onward’s acceptance of the need for more positive taxation in the rented sector which the RLA has long argued for. Indeed, last year, we suggested using Capital Gains Tax reliefs in a similar way to that being proposed today.

“Since then, a report by academics at Cambridge University for the RLA has argued that it is not clear whether a reduction in the rates at which Capital Gains Tax is applied would incentivise landlords to sell their properties to sitting tenants. A more suitable approach would be a tax relief on rental income for the provision of longer tenancies with a refund on the stamp duty levy for additional properties where a landlord is prepared to sell a property to a sitting tenant.”

David Smith continued:

“Where Onward is wrong is in its call for landlords to disinvest from the sector. With the demand for private rented homes showing no signs of abating, and the Institute for Fiscal Studies today warning of the difficulties many young people have affording a home of their own, to choke off the supply of rental homes would leave many young people stranded and continuing to rely on the home of mum and dad for a place to live.

“The Chancellor should use his budget to scrap the stamp duty levy on additional properties where landlords are prepared to invest in property adding to the net supply of homes. This could include bringing empty homes back into use, new build properties or converting larger properties into smaller, more affordable units. To tax new housing supply given the current housing crisis we face is simply ludicrous.”

Source of information RLA

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Rightmove logo
Breaking News

Back-to-school buyer bounce outpaces typical September uplift

New real-time analysis from the UK’s largest property platform Rightmove reveals that buyer demand received a stronger than usual back-to-school boost during the first week of September Buyer demand increased by 5% during the opening week of the month, significantly higher than the average increase of 0.4% seen over the same period during the last…
Read More →
Letting Agent Talk

8,500 tenanted homes currently on the market

8,500 tenanted homes currently up for sale as TLP highlights importance of clean client money handovers   More than an estimated 8,500 homes are currently being marketed for sale with tenants in situ across England, according to the latest analysis by The Letting Partnership, presenting landlords with the opportunity to acquire an investment generating rental…
Read More →
Estate Agent Talk

Which property types take the longest time to buy?

From complex flats and shared ownership homes to new builds and unusual titles, Lyons Bowe reveals which properties can create the biggest conveyancing workload   The latest insight from Lyons Bowe has revealed which types of property are most likely to require the largest and most complex conveyancing workload, potentially adding more stages to the journey…
Read More →
Commercial Agent Talk

Building Site Accidents and Compensation: A Guide for Injured Workers

One mistake, one faulty piece of equipment and an unsafe working setup could cause a construction laborer much more than just aches and pains. One injury can result in medical costs, showing up on working days, reduced income and a path to long recovery. Under certain circumstances, the workers may be entitled to get compensation…
Read More →
Estate Agent Talk

First-Time Buyers: Why 4–5 Houses is the Sweet Spot

House hunting before the stress kicks in: Four to five houses is the sweet spot for first-time buyers Just 20% of us feel excited on a first property viewing, rising to 47% by viewings 4 to 5 There’s a U shape trajectory of excitement when it comes to the viewing process However, there is a…
Read More →
Breaking News

Two in five mortgage holders switched banks for a better mortgage deal

Of those who have a mortgage and switched banks, 41% did so to get a better mortgage rate deal and 30% did it to receive an incentive related to their mortgage Only 15% of people moving home switched their bank account during the move, while far more switched broadband (46%), energy (38%), and mobile phones…
Read More →