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Landlords Propose Ex-Rental Boost for First Time Buyers

RLA
Written by RLA

As the Conservative Party today re-affirmed plans to help first-time buyers with a 20% discount on new homes, the Residential Landlords Association (RLA) urged changes to Capital Gains Tax (CGT) to provide a further boost by freeing up ex- rental homes…

As the Conservative Party today re-affirmed plans to help first-time buyers with a 20% discount on new homes, the Residential Landlords Association (RLA) urged changes to Capital Gains Tax (CGT) to provide a further boost by freeing up ex- rental homes.

Proposals in the RLA manifesto would see landlords who sell a former rental home to a first-time buyer benefit from relief on any Capital Gains Tax (CGT) payable on the property.

RLA Chairman, Alan Ward said

“This is a sensible policy that could increase the number of properties available to first-time buyers.

“It may also allow a number of landlords to exit private renting, especially those for whom the level of CGT makes selling their property marginal, and who can feel trapped in the sector.

“Offering roll-over relief, makes the sale viable and would see more properties on the market for first-time buyers.”

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RLA

RLA

The Residential Landlords Association (RLA) represents the interests of landlords in the private rented sector (PRS) across England and Wales. With over 23,000 subscribing members, and an additional 16,000 registered guests who engage regularly with the association, we are the leading voice of private landlords. Combined, they manage almost half a million properties.

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  • It would be impractical to give CGT relief if property sold to ‘first-time buyer’. Abuse would be rife, e.g. selling to offspring/friends etc..

    The ridiculous house price inflation in the UK, contributory to first-time buyers difficulty in getting on the housing ladder, would be curtailed by imposing CGT on all sales, including the main residence.

  • Sorry I must correct myself, it’s not rediculous. It’s ridiculous. This title might as well be “Landlords propose tax break for landlords”. I think this proposal is all about self-interest, not concern for first time buyers.
    Your own manifesto states that…
    6.9.4. “At present, the key taxes levied on smaller-scale private sector landlords are income tax on rental income and Capital Gains Tax (CGT) when a property is sold…It should also be noted that much of the tax notionally paid by the landlord is in fact paid by the tenant, as landlords set rents to allow for taxes.”
    So, if by your own admission, much of the tax paid by the landlord is in fact paid by the tenant, I calculate that the landlord pays a total of: not much.
    If tenants pay much of the CGT, a fairer policy would perhaps be to refund the tenants with the share of the CGT tax they’ve paid when the property is sold. This would put money directly into the pockets of many people aspiring to buy their own first home. Now there’s an idea.

  • I think this is an excellent idea and would free up a lot of properties to first time buyers, I would certainly think about off loading some of my own.

  • Not sure how you came up with that barmy idea that Landlord does not pay much tax, or that it’s paid by the tenant?? Not sure what kind of arrangement you have, my tax is sky high and I sometime wonder if it’s worth all that hard work.

  • I recently withdrew my flat from the market when I realised the CGT would dramatically reduce my profit. Bring back taper relief!

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