Landlord concerns grow over capital gains tax changes

Landlord concerns grow over capital gains tax changes

0:02 AM, 28th March 2023, About A year ago 3

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Nearly half of landlords are concerned about capital gains tax changes, according to a new survey.

The findings from Finbri reveal that 45% of landlords have expressed concern about the potential impact of capital gains tax (CGT) on their investments.

In the Chancellor’s Autumn Statement on 17 November 2022, it was announced that capital gains tax allowances will be reduced from April 2023 and further reduced from April 2024.

Impact profitability for landlords

The annual CGT tax-free allowance is currently £12,300, meaning buyers only pay tax on gains above this amount when they sell a property.

The tax-free allowance will decrease by more than half to £6,000 in April 2023. It will drop to £3,000 in 2024 – the lowest allowance in more than 40 years.

Stephen Clark, from Finbri, said: “The new CGT rate, coupled with other tax changes that have been introduced in recent years such as the restriction on mortgage interest relief and stamp duty increases, will significantly impact profitability for landlords and investors when they come to sell their properties.”

He added: “The PRS is vital in the broader UK housing market. It provides accommodation for those unable to get on the property ladder and landlords with an income.

“But with increasing rates and the looming impact of CGT rates changing, landlords are under significant pressure, with many looking to leave the market altogether.”

Landlords will invest in property in 2023

The survey also reveals that there is uncertainty amongst landlords about whether they feel supported by the UK government.

In the survey, 41% of landlords say they do feel supported. However, a combined 59% said they don’t know or they don’t feel supported by the government.

Despite landlords’ concerns regarding CGT, 45% of them think they will invest in property in 2023.

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16:15 PM, 28th March 2023, About A year ago

Made the decision to exit the BTL market all together, last property will go early 2025, this tenant has been in the property for 20 years, governments make regulations that always have unexpected consequences, more rules regulations piling taxation onto landlords, an easy touch, they won't be laughing when thousands of good tenants are homeless, sort this one out Starmer, as its very unlikely the Conservatives will be in power after the mess they have made over the past 13 years

Kim Johnson

17:52 PM, 28th March 2023, About A year ago

In guessing all the ministers have invested in Airbnbs.

They are benefitting from tax breaks whilst traditional letting hit hardest when people are desperate for are being penalised. Then they will wonder why there is no affordable properties in the area doh!

Landlords will go the Airbnb route. Brilliant!

sean carrington

19:45 PM, 28th March 2023, About A year ago

who are these 41 % of landlords who say they feel supported by the govt /
since 2016 they have increased any property i buy in the south east of england from a few thousand to £10k plus while at the same time cutting non landlords stamp duty on the exact same property to zero /
now cut my capital gains relief .
introducing epc rules which i am not sure how they can be implemented /i have 1 property rented that is a 1980 built bungalow epc grade d about 7 points from grade c / but it has had high spec new everything done in 2016 /boilers/radiators/kitchen/bathroom/double glazing/doors/real wood floor throughout /only thing not changed was the roof / and the only thing i can see that will make it pass is to rip up the floor or install a heat pump on a property a heat pump is not suitable for -madness .

in scotland where i am a landlord as well /now 6% stamp duty on lower end propertys over 40k and eyewatering stamp duty on high end propertys
on the plus side scottish conveyencing and buying and selling process puts england to shame.

but i see landlords on rightmove selling there whole portfolios in scotland and no takers with them having to go to auction.

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