Calls grow for capital gains tax to be reformed

The National Residential Landlords Association (NRLA), acting on behalf of private landlords, is backing calls for reform to capital gains tax payment rules.

The report, published yesterday by the Office for Tax Simplification (OTS), makes a series of recommendations that it believes will improve the system and the wider housing market.

The OTS calls for the deadline for the payment of capital gains tax to be extended from 30 to 60 days following disposal of a residential property. It says that a round a third those liable to pay CGT on the sale failed to file on time under the existing 30-day rule.

Chris Norris, policy director for the NRLA, said: “Landlords should always ensure they meet all legally required deadlines to pay tax. That said, today’s report from the Office for Tax Simplification demonstrates a woeful lack of communication and consideration by HMRC about what is expected of those liable for the tax. It adds weight to the argument that the seemingly arbitrary, 30-day deadline has created more problems than it solves.

“We would support the OTS in recommending an extension to 60 days to avoid landlords missing a shorter deadline, potentially through no fault of their own.”

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2 Comments

  1. AlwaysAnAgent

    Another useful campaign by the NRLA and one that is likely to succeed.

    Report
  2. Burn red tape

    I read an interesting article several years ago by an economist who advocated cancelling CGT for one year certain, as a trial to raise more taxes.

    His theory was long held assets, were stuck in the same owners hands due to large CGT liabilities if sold.

    In a CGT free period many of these long held assets of no longer interest to their holders would be placed on the market. As a result there would be a frenzy of selling and buyer resulting in greater tax as a result.

    Report
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