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.

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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:

  1. Scrap stamp duty on homes worth less than £500,000
  2. Release building land by giving councils powers to sell sites to smaller developers
  3. Design and build by tender after outline planning permissions are received
  4. Fewer impositions on councils who fail to get enough homes built
  5. 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.

2 COMMENTS

  1. Non UK tax resident Landlords do Not pay Capital Gains Tax (CGT) on their capital gains that have been accumulated on their properties in the UK up to April 2015; whereas UK tax resident Landlords pay CGT on all their property capital gains that have been accumulated since the date they acquired the properties.
    This is unfair to the UK based landlords and deprives the UK government tax revenue on capital gains that arose in the UK.
    The foreign based landlords has to pay CGT anyway, either to the country where they are a tax resident or in the country where the gain has arisen.

    Perhaps the PM candidate should think to make the playing field even between foreign and local landlords

  2. Dominic Raab is the stand out candidate for PM and gets my vote for his well considered views on Brexit and more importantly housing.

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