Landlords will be offered CGT exemption by Conservatives

Landlords will be offered CGT exemption by Conservatives

9:41 AM, 11th June 2024, About 3 weeks ago 21

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The Conservative Party’s manifesto will be published today with a pledge to eliminate capital gains tax (CGT) for landlords, the Daily Telegraph reports.

However, the exemption will only be for those landlords who sell their property to a sitting tenant.

The initiative will run for two years with the aim of boosting the housing market and helping renters achieve homeownership.

The new rule would not apply to someone’s primary residence, which is already exempted from capital gains tax.

It’s also worth noting that the big catch is that landlords can’t use the exemption if selling to a tenant who began renting after today (10 June).

‘Difficult decisions because of Covid’

The Telegraph reports that the Prime Minister, Rishi Sunak, will say: “We Conservatives have had to take difficult decisions because of Covid.

“But we are now cutting taxes for earners, parents and pensioners.

“We are the party of Margaret Thatcher and Nigel Lawson, a party, unlike Labour, that believes in sound money.

“In this party, we believe that it is morally right that those who can work do work, and that hard work is rewarded with people being able to keep more of their own money.”

Not many landlords will benefit

The move will cost around £20 million which means that not many landlords will benefit, and the average investor will save around £21,000 in CGT.

The policy is part of a broader scheme to help reduce the housing crisis and lower the tax burden.

However, the newspaper reports that no one knows how many landlords will take advantage.

Mr Sunak will also promise to help 27 million households with a tax cut if re-elected by reducing the employee National Insurance again – by 6%.

There’s also the return of the Help to Buy scheme and first-time buyers won’t have to pay stamp duty on properties worth less than £425,000.

Reduce how much landlords pay in tax when investing

Propertymark chief executive, Nathan Emerson, said: “Propertymark welcomes the concept of tax breaks, and we would like to see more support for homeowners.

“However, if the Conservatives are serious about supporting the private rental sector to grow, then they need to reverse the changes to mortgage interest relief and reduce the amount landlords pay when purchasing a buy to let property.”


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Comments

Dylan Morris

11:43 AM, 12th June 2024, About 3 weeks ago

It’s all irrelevant …..Sunak will be heading off to work the California after dinner speaking circuit come the 5th July. And the way other things are going we’ll all be vapourised by the end of the year.

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