Allow Landlords to evict tenants where there are 14 days rent arrears14:34 PM, 1st October 2020
About 3 weeks ago 97
I became a landlord to manage my own destiny as my pensions are poor due to redundancies etc.
I contend that
1. Private landlords can only use 1 year’s capital gains allowance. This is unfair
2. The current method of calculating a capital gain is wrong and does not reflect the true value of an asset at the time of sale.
3. The costs allowable against a capital gain are a sop
There used to be taper relief on capital gains. This was withdrawn approx. 2008 accompanied by accusations that the system had become to complex.
Currently, the Personal Capital Gain is a simple calculation : SALE PRICE less PURCHASE PRICE.
This is understandably simpler but if an asset is owned for many years the true present value of the asset is ignored. As a crude example, (not trying to make anyone suck eggs, just laying out the point) :
£1 today is £1.16 in 10 years at 1.5%.
If I sell for £1.20, I believe my capital gain to be £1.20 – £1.16 = 4p.
The Government thinks it is 20p.
The Government’s calculation is a distortion of reality and the allowable costs are a sop.
A personal example, approx. figures.
Purchase 2002, £180k.
Value 2015, £350k.
Using ONS stats, compounding annually.
Present value – compounded RPI = £269k
Present value – compounded CPI = £245k
Capital gain RPI = £81k
Capital gain CPI = £105k
Capital gain – Government’s current method = £170k
As far as I can see, the Government’s method of calculating a capital gain extends to most things eg. Works of art, Classic cars, a car boot lucky find etc. and I may be approx right in saying that these examples at least benefit from being able to use 2 years allowances. BTL’s are limited to 1 year.
Also, I can see the incentive for the Treasury to hold fast as the potential CGT revenue probably figures in the country’s accounts.
I can find only one petition on the Government’s portal that is related which currently stands at 113 signatures. It asks for a CGT moratorium for landlords who sell to First Time Buyers.
I can see that the Elders of this forum are active and are lobbying on various issues; is this one of them?
Am I right?
Have I missed a point?
Should Government be lobbied?
Does asking for a present value calculation conflict with other actions of which I am unaware?
Is another petition worth it and would it make 10,000 signatures?
Thanks for reading.
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