Treasury told: ‘Reform Capital Gains Tax to help letting sector’
The National Landlords Association appears to be first off the starting blocks with its submission to government to help the letting sector ahead of the next Budget, scheduled for November 22.
A statement from the association says its focus has been to ensure that fiscal and economic policy better supports investment in private rented property and that sufficient funding is allocated to facilitate the implementation of the Homelessness Reduction Act.
The 11 recommendations submitted to the Treasury are:
- Embark on an immediate review of the removal of finance cost relief for private landlords;
- Introduce a package of Capital Gains Tax reduction measures to encourage the sale of poorly performing investment properties; of properties where the proceeds of the sale will be entirely reinvested into the lettings business; of properties invested in, and utilised, for a period of more than 10 years; and of properties that are eligible and suitable for sale to existing tenants;
- Introduce measures to facilitate the tax-efficient movement of a letting portfolio into a corporate structure;
- Establish a government-backed investment vehicle to allow the sale of properties into a managed fund;
- Reintroduce the Landlords’ Energy Saving Allowance and establish a level sufficient to improve the tax efficiency of carrying out relevant works;
- Set LESA at a level sufficient to improve the tax efficiency of carrying out works;
- Fund the expansion of Help To Rent nationwide;
- Establish a national deposit guarantee scheme for the private rented sector;
- Remove the Capital Gains Tax surcharge for property sales;
- Introduce Capital Gains Tax tapering and business asset rollover relief for private residential property which is let;
- Abolish the Stamp Duty Land Tax levy on additional property.