Capital Gains Tax:
PM candidate and former Housing Minister, Dominic Raab has called for a change to Capital Gains Tax (CGT) for landlords. His idea is that on properties of up to £35,000 in value, where they are sold to the existing tenant, the CGT should be waived.
He also suggests Scrapping stamp duty on homes worth less than £500,000.
A Conservative think tank, Onward, had suggested the idea in a report published last year, and that the money saved by the landlord in not paying Capital Gains Tax should be split fifty-fifty with the tenant. However, Dominic Raab is now taking up the idea but suggesting that the saving should be split more in favour of the tenant, with one-third going to the landlord and two thirds to the tenant.
This, Rabb thinks, would help more tenants to get onto the housing ladder, and no doubt push forward the Conservative policy of increasing home ownership, by having a pot of money passed on to the tenant to help with a 10% deposit.
Raab has also called for sanctions to be imposed on those developers who fail to meet their build targets at the rates they promised, after they purchase land and secure planning permission. In a recent interview with the Daily Telegraph Mr Rabb also set-out his ideas for further solutions to address the housing crisis:
- Scrap stamp duty on homes worth less than £500,000
- Release building land by giving councils powers to sell sites to smaller developers
- Design and build by tender after outline planning permissions are received
- Fewer impositions on councils who fail to get enough homes built
- Digitise land registry records and support more modular housing
Raab is currently running second favourite to replace Theresa May as prime minister after Boris Johnson.