Capital Gains Tax review announced

Posted: 25/7/2020

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The Chancellor of the Excheuer has written a letter to the Office of Tax Simplification (OTS) requesting it to undertake a review the Capital Gains Tax (CGT) regime.

The possible outcome of such a review could cause homebuyers, investors, and landlords to exit the market if major increases in tax were proposed and subsequently introduced in the near future.

The scope of the review specifically calls for an examination of CGT and its use in the ‘the acquisition and disposal of property’ and ‘the practical operation of principal private residence relief’ which means that individual homeowners, landlords and investors could all be seriously affected.

The government seems not to have learned from its last failure which was increasing income tax for landlords. This resulted in landlords selling up, reducing rental supply and increased rents. Those landlords who remained just passed the tax onto tenants in higher rents - as the government was told.

Did you know? Key One Property sales fee is half that of many other agents - just 0.5% - subject to t&cs.

 

 

 

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