Finance and Taxation Reform

Landlords reassured on Finance Bill changes

Sally Walmsley
Written by Sally Walmsley

The Government has reassured landlords that amendments recently tabled to the Finance Bill will not affect PRS landlords.

The RLA raised concerns about the proposed changes, which it believed blurred the distinction between trading profits from the purchase and resale of property and investment in homes to let.

The Law Society also warned that the newly worded Bill suggested that buy to let investors could be liable to pay income tax rather than CGT when selling their properties.

However HMRC has said the changes being proposed are being introduced specifically to affect developers of UK property who opt to operate from somewhere other than the UK to reduce their tax bills.

A spokesman said there will be no effect on companies whose profits are already fully taxed in the UK.

The Chief Secretary to the Treasury said: “This measure is targeted at those who have a property building trade; it does not impact the tax profile for investors in UK property.”

HMRC has said it will release further guidance on the issue in the near future.

About the author

Sally Walmsley

Sally Walmsley

Sally Walmsley is the Magazine and Digital Editor for the NRLA. With 20 years’ experience writing for regional and national newspapers and magazines she is responsible for editing our members' magazine 'Property', producing our articles for our news site, the weekly and monthly bulletins and editorial content for our media partners.

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