Could capital gains tax changes reduce the number of landlords?
As the UK government looks to introduce income generating changes to the UK taxation system many believe they may have overstepped the mark regarding capital gains tax. There is growing concern that the number of landlords in the UK could reduce after the UK government announced a significant increase in taxation for those investing in this particular arena. So could this actually reduce the number of landlords in the UK?
For many years, prior to the sudden economic downturn, many have seen the landlord market as something of a "gravy train" which many investors climbed aboard. However, while many investors were able to bank significant profits on their second, third, fourth, etc homes the sudden downturn did catch many by surprise and indeed many lost everything. The increase in capital gains tax, announced at the last budget, has effectively increased the risk/reward ratio in this particular investment arena and many landlords have announced their intention to pull out.
This comes at a time when UK house prices are well out of the reach of many first-time buyers and demand for rented property continues to grow. If rented property numbers do fall in the short to medium term this will push prices higher for those properties available and could stretch the finances of many people to the limit.
Share this..
Related stories
Budget Headlines : Companies able to reclaim tax on past profits
Companies able to reclaim tax on past profits...
Read MoreConservative party promises swift action on budget deficit
George Osborne, the shadow chancellor of the exchequer, has today outlined what action the Conservative party would take in its first few months in office with regards to the ever-growing UK budget deficit. Estimated to be around £175 billion at the moment the budget deficit needs to be addressed as soon as possible and George Osborne has promised significant spending cuts across the board if, as...
Read MoreIs the national insurance increase a tax on jobs?
As the debate regarding the Labour government's proposed 1% increase in national insurance, and the conservative party's partial reduction, rages on there is a growing feeling that the increase is actually a tax on jobs. Indeed the Conservative party has today issued a number of additional costs which UK taxpayers will incur if the national insurance rise was to go through. So how would the increa...
Read MoreStealth taxes to hit the property sector
In a move which is as much about protecting tenants as it is about raising additional funding, the UK government is currently considering a scheme which would see all landlords added to a national register. While presented as a way of highlighting rogue landlords and potential fraudulent activity, the £50 charge per landlord would raise a significant amount of money for the UK government without...
Read MoreHow did Gordon Brown get it all so wrong?
Despite having a second honeymoon just a few months ago Gordon Brown is today under renewed pressure as rescue package after rescue package fails to stimulate the UK economy. While much of the blame is now being pointed towards the UK government and Gordon Brown in particular, after his long tenure at the Treasury, there are concerns that he has been caught up in a worldwide phenomenon and could p...
Read More