MP bids to give landlords a tax break
A Conservative MP has launched a bid to help buy-to-let landlords who have been denied a tax break on their property profits.
After Chancellor George Osborne excluded landlords from a significant capital gains tax cut in his Budget statement, buy-to-let investors continue to be pay CGT at 28%.
Investors in other types of asset benefit from the higher rate of CGT reduced to 20%, while the basic rate was reduced from 18% to 10%.
Kevin Hollinrake, the MP for Thirsk and Malton who spoke out against proposals to privatise the Land Registry last week, is tabling an amendment to Clause 72 of the Finance Bill that would extend the new 20% CGT rate to private landlords when they sell the property to a sitting tenant.
The motion to put the measure into an amendment to the Finance Bill, which is currently going through parliament, was originally put forward by the Residential Landlords’ Association.
Research by the RLA found that that 77% of private landlords would consider selling their property to tenants if the tax liability was reduced.
However, with the Bank of England considering reducing its base rate from the all-time low of 0.5% many landlords could see the value of their buy-to-let investments rise.
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For more information about the amendment to the Finance Bill, click on the link below