Buy-to-let investors: 'Let us off capital gains tax and we'll sell to first-time buye

[meridian]

currently they pay capital gains tax ,

Only if they sell

the suggestion that due to a radical change in taxation to their business model many may wish to exit BTL and if the government don't want all the BTLs flogged to a tax haven and left empty then they should make it attractive to sell BTLs to first time buyers.

The response seems to be an emotional "BTL landlords should be strung up the filthy capitalists" rather than a pragmatic well why don't we give them a tax incentive to get them to sell to first time buyers that makes sense.

#TurkeysVote4XMAS

Both sides are being equally emotive - at the first signs that their business model of "borrow to let" means that they will be taxed, the response from the BTLers is an emotional "if you let us off the tax on our unrealised capital gains then we'll consider selling to first-time buyers".

BTLers have been relying on capital gains for well over a decade, and now that the chickens are coming home to roost and they have to pay tax on those gains they are trying to wriggle out of it.

[vetran]

Only if they sell



Both sides are being equally emotive - at the first signs that their business model of "borrow to let" means that they will be taxed, the response from the BTLers is an emotional "if you let us off the tax on our unrealised capital gains then we'll consider selling to first-time buyers".

BTLers have been relying on capital gains for well over a decade, and now that the chickens are coming home to roost and they have to pay tax on those gains they are trying to wriggle out of it.

Yes they pay CGT if they sell, the likelihood is some will sell due to the suggested tax change. If you feel your aims are best served by punishing them then good for you.

They can sell as a result of the tax change, now if you want to maintain the housing stock and not end up[ with lots of homeless renters you want to convince BTL landlords to sell to first time buyers not Chinese investors who will leave them empty.

If you think suggesting an incentive for selling to first time buyers is a bad thing then don't bother, just watch the rental stock disappear - I don't care I have a nice big house, the less houses that people can access will drive the value of my properties up. Soon it will be £2M for a garage anywhere in the UK.

If you want cheaper rentals prevail on the government to build more houses and keep the ones that exist occupied. If they decrease the number of people able to buy them then less will be built and if they dissuade UK landlords then most of the rental properties will become foreign investments.

[meridian]

Yes they pay CGT if they sell, the likelihood is some will sell due to the suggested tax change. If you feel your aims are best served by punishing them then good for you.

I'm not looking to punish them at all. Unless you see paying capital gains tax on capital gains as a punishment.

They can sell as a result of the tax change, now if you want to maintain the housing stock and not end up[ with lots of homeless renters you want to convince BTL landlords to sell to first time buyers not Chinese investors who will leave them empty.

If you think suggesting an incentive for selling to first time buyers is a bad thing then don't bother, just watch the rental stock disappear - I don't care I have a nice big house, the less houses that people can access will drive the value of my properties up. Soon it will be £2M for a garage anywhere in the UK.

If you want cheaper rentals prevail on the government to build more houses and keep the ones that exist occupied. If they decrease the number of people able to buy them then less will be built and if they dissuade UK landlords then most of the rental properties will become foreign investments.

Your argument appears to be based entirely on the premise that if BTLers sell, the only people in the marketplace that will buy are foreign investors that will leave properties vacant. I don't happen to believe that this is the case. There are plenty of people right now waiting to buy and what they need is the housing stock. If this stock becomes available through BTLers deciding to sell because it's no longer economically viable due to the tax changes and their own over-leveraging, and they pay tax on the capital gains as a result, then it's a double-win as far as buyers and taxpayers are concerned. The BTLer will also have made a profit (that's the capital gain that they've made and had to pay tax on) so everyone's happy.

[vetran]

I'm not looking to punish them at all. Unless you see paying capital gains tax on capital gains as a punishment.



Your argument appears to be based entirely on the premise that if BTLers sell, the only people in the marketplace that will buy are foreign investors that will leave properties vacant. I don't happen to believe that this is the case. There are plenty of people right now waiting to buy and what they need is the housing stock. If this stock becomes available through BTLers deciding to sell because it's no longer economically viable due to the tax changes and their own over-leveraging, and they pay tax on the capital gains as a result, then it's a double-win as far as buyers and taxpayers are concerned. The BTLer will also have made a profit (that's the capital gain that they've made and had to pay tax on) so everyone's happy.

that does seem to be the thrust of your argument that BTLers are holding back houses. Its a small part of the market and many of the people that rent cannot buy for many reasons.

I'm just saying be careful what you wish for, many may not sell, may decide to convert or upgrade using their rental income or similar pushing many properties out of first time buyers reach. Rental costs will also spiral.

Revealed: How foreign buyers have bought £100bn of London property in six years | London | News | London Evening Standard

[meridian]

that does seem to be the thrust of your argument that BTLers are holding back houses. Its a small part of the market and many of the people that rent cannot buy for many reasons.

It's a relatively small part of the overall market, but a large part of the non-owner-occupied market:
https://www.gov.uk/government/statis...n-england-2014

[PurpleGorilla]

BTL are bottom feeders (broadly) so going for the same flats and houses that FTB would want to buy.

As for capital gains tax - if you are Lower threshold its 18%

I pay more VAT for a packet of biscuits.