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Residential property CGT 'only a problem if landlords sell'
The proposed rise in capital gains tax (CGT) for residential property is only an issue for landlords if they plan to sell a property now, it has been said.
According to the National Landlords Association (NLA), landlords should only be concerned if their short-term plan is to place a property on the current market.
Most landlords plan for the long term and keep hold of their assets, meaning a rise in CGT will not cause them difficulties.
Ellie Irwin, press officer at the NLA, said the majority of landlords do not purchase a property to make a quick residential sale.
However, she noted she understood why some may be concerned about a rise in CGT.
"We think there are more appropriate ways to raise tax rather than through an arbitrary CGT rise," Ms Irwin added.
Her comments come after a LSL Property Services survey found 71% of landlords think an increase in CGT would lead to them reconsidering residential property as a future investment.
Posted by Tom Baker
According to the National Landlords Association (NLA), landlords should only be concerned if their short-term plan is to place a property on the current market.
Most landlords plan for the long term and keep hold of their assets, meaning a rise in CGT will not cause them difficulties.
Ellie Irwin, press officer at the NLA, said the majority of landlords do not purchase a property to make a quick residential sale.
However, she noted she understood why some may be concerned about a rise in CGT.
"We think there are more appropriate ways to raise tax rather than through an arbitrary CGT rise," Ms Irwin added.
Her comments come after a LSL Property Services survey found 71% of landlords think an increase in CGT would lead to them reconsidering residential property as a future investment.
Posted by Tom Baker
Fri, 4th Jun 2010