Those agents working in more ordinarily priced areas of the UK might think that mansion tax would not be a worry for them.
But something else could be – a proposal to charge Capital Gains Tax on the sale on private homes.
It has come from Kate Barker, a former member of the Bank of England’s money policy committee, and also author of a report on housing for the last Labout government.
Her new book, Housing: Where’s the Plan?, comes out tomorrow.
Barker said that while Capital Gains Tax is currently charged on second homes, the case for applying it to main residences is strong.
She said: “Charging CGT on gains on our main residences would bring the taxation of housing more into line with other assets, and it would tend to discourage over-investment in housing.”
She hinted that it might not even be necessary for home owners to sell the property in order to incur Capital Gains Tax.
She said a Capital Gains Tax bill could be rolled up by home owners over their lifetime, and charged on the death of the second partner, alongside inheritance tax.
Comments (5)
Just what we need, another layer of tax.
It would be nice for Commentators to address whether the underlying point is correct: is CGT on some homes, but not others, fair? If yes, why? If not, what's a better thing to do?
Bear in mind, while some people 'earn' wealth through the appreciation of house prices, the country that is investing in the prosperity of the land is running at a £200bn a year Budget deficit – much of it to prop up house prices.
so do they give us a rebate if we sell our property at below the purchase price……………… thought not!
Guaranteed political suicide.
………nope, can't be ***** to comment – Jonnie