A Conservative MP has called for a reduction in capital gains tax paid by buy-to-let landlords who sell their rental property to sitting tenants.
Kevin Hollinrake, founder of franchise agency Hunters, made his call through an amendment to the Finance Bill.
In this year’s Budget, former Chancellor George Osborne announced that the 28% rate of capital gains tax would be slashed to 20% for most assets. However, he did not include residential property in this list.
Industry professionals have repeatedly complained about this exception, particularly as it comes on top of alterations to mortgage interest tax relief and Wear and Tear allowance.
Before the proposed amendment by Mr Hollinrake, the Residential Landlords Association called for an exception to encourage landlords ready to sell properties to do so.
Research from the Residential Landlords Association discovered that 77% of private landlords would think about selling their property to tenants, should tax liability be amended.
New-buy-to-let tax break proposed by MP
Policy director at the Residential Landlords Association, David Smith, said, ‘many landlords are now considering their future in the market following recent tax increases whilst others will be looking to sell as part of the natural churn of properties in the rental market.’
‘This amendment would help achieve the Government’s aim of encouraging and supporting home ownership for aspiring first-time buyers whilst easing some of the excessive tax burdens recently placed on landlords,’ Smith added.