Chancellor Rachel Reeves’ tax hike rumours fuel anxiety in PRS

Reply to the comment left by William Robson at 14/08/2024 - 12:38
It is defined by HMRC

Reply to the comment left by Dylan Morris at 14/08/2024 - 17:24
With the renters reform bill and CGT increases, it would increase selling, the remaining shortage of properties with therefore being greater demand with higher rents. LL have had enough

Pressure on councils with the low-grade properties, not always fully maintained, not managed at the same PRS standards demanded by the government, not in very good areas, would increase exponentially vv the comments above

All this rubbish about all landlords are bad just to promote the labour party and any idiot that believes it. In areas of life there are bad apples or people who are just money orientated and not caring about others. On the other side of the coin you have landlords who look after their properties well, have good relationships with their tenants and ensure that their investment is protected for their retirement. This means they are not benefit demanders on the state during their retirement. .

IMO any increase in Capital Gains tax in the budget on October 31st would come in to effect the very next day on the 1st November.
Reeves would think, perhaps rightly so, that this would prevent an immediate flood of properties for sale coming on to the market.

Reply to the comment left by RODNEY CRABB at 17/08/2024 - 07:28
No, you are just accelerating the disposal date, just in case the rates change. It is perfectly legal, but there are costs to doing it, so it would only really be worthwhile if you were going to sell anyway, and wanted to lock in your tax rate on the gain.

Most likely, any changes will be immediate, so if you don't 'dispose' before the statement you will immediately be paying a higher rate of CGT if she does announce increases.

Unfortunately Labour are only completing what the conservatives started with regard to CGT.
Not so long ago a couple would get the first £21K or so entirely free of tax, now it’s £6K. That is significant.
There has been concern for a number of years CGT would be brought in line with income tax.
Not looking forward to the autumn budget, it’s unlikely to be positive for landlords or anyone else for that matter…….

Reply to the comment left by james pearce at 17/08/2024 - 15:20
I find one annoying problem with multi rate CGT is that you have do every tax return twice. First you must do the first one within 60 days of sale and estimate your income for that tax year which determines whether you should be paying 18% or 28% (24%) CGT. I always underestimate my income especially if a sale occurs early in the tax year. Rental income isn't guaranteed and you could have major property expenses or a tenant stops paying rent.
Then when you do your self assessment, which could be 9 months after the end of the tax year you have to complete the capital gains tax pages again.so that HMRC can calculate whether you have paid enough CGT at the correct rates.
In the 'good old days' there was only one rate of CGT, and you just did your return once on your self assessment return. You also had a lot longer to pay your CGT bill.

The trouble is these so called 'gains' are not gains. You could not sell and then buy another property at the same price. I call it robbery. I'm holding on to my properties so CGT will die with me but I fear even that's at risk.

Why is CGT linked to income ? Surely they are separate.

Reply to the comment left by PH at 03/09/2024 - 18:51
Unfortunately when you sell, the gain is added to your income for that year so it's likely to take you into a higher tax band. It can be very painful!

Reply to the comment left by Grumpy Doug at 04/09/2024 - 08:57
I presume that means my income won't be taxed otherwise it means the income is taxed twice.