Stability of buy-to-let will be disturbed by UK CGT rise

The stability currently present within the private rental sector is set to be disturbed by the government's plans to raise capital gains tax (CGT), it has been claimed.

According to the Residential Landlords' Association (RLA), a sudden increase would undermine the confidence that has been returning to the market in recent months.

The comments come in the wake of an announcement by the coalition government that it will increase capital gains tax for non-business assets, although it has promised "generous exemptions for entrepreneurial business activities".

Alan Ward, chairman of the RLA, explained that he wanted to see landlords exempt from the proposed rise.

"Increases in CGT should also exclude landlords retiring from the business as they are often long-term investors with major capital gains after many years of business development," he added.

The RLA says that the new government must focus on encouraging investment in property, rather than punishing landlords looking for further investment.

In addition, PricedOut said that landlords should not be included in any new capital gains tax exemptions.

Like this? Then share with your friends and colleagues!