The RICS has called for the Chancellor to exempt landlords from capital gains tax when they sell their properties to the tenant.
It said the measure could allow 100,000 private tenants to own their homes.
It said the current tax system is a disincentive for landlords to sell, and acts as a barrier to the release of homes on to the market.
The RICS’s call follows that of the Residential Landlords Association, which has said that 77% of private landlords would consider selling their property to tenants if liability for capital gains tax was waived.
The RICS also called for stability in tomorrow’s Budget.
Policy director Jeremy Blackburn said: “The Government has changed its policies around property taxes mre often than the Chancellor has been pictured in a hard hat. That has resulted in uncertainty in the property market.
“What we need is a period of stability and we call on the Government to set a course and see it through.”
Nice thought. I can see that many might register as a tenant for x months to skip over the 3% SDLT that would later follow.
No doubt any adoption would come with lots of red tape, down to shoe size and the colour of the tenants car 🙂
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How do you avoid 2nd home SDLT by becoming a tenant in the primary property?
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Or even the 18/28% CGT the article is about!!
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Landlords who want to sell are already happy to sell to current tenants who are willing to buy and can pay the market price.
IMO this proposal would be a subsidy to lower prices because it would give an incentive to landlords to accept a low offer if it was more than offset by the tax savings.
If the government wishes to spend money, IMO it would be better spent on encouraging construction.
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