Friday, May 14, 2010
BTL strike - oh dear...
Guardian: CGT anger
Property "investors" are angry and will move to Switzerland. The time now HPC folk to buy shares in Eddie Stobart as they put their property portfolio on a lorry and move it somewhere else?
Posted by chrisch @ 09:20 AM (1239 views) Add Comment
9 Comments
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1. cat and canary said...
muahahahahahaha!!!!
"....we'll move to switzerland" argument was used by bankers with some success.
doubt if the "brain drain counter argument" really applies to property investors!!!
2. Giordano Bruno said...
'As landlord groups warned of a "fire sale" of properties by Britain's one million buy-to-let investors as they attempt to beat the tax'
So, I'm can live with that, and with city investors and traders leaving UK. 'Bye, Bon voyage.'
3. miken said...
If your lucky or rich enough to be able to afford a second home (or BTL) and have made a profit on it then I think you should be paying taxes in line with normal personal taxes. I don't see why you should have a possible 22% tax reduction just because you happen to have invested in a house.
4. sneaker said...
Let them leave ... I don't want the atmosphere in the country to be set according to the wishes of disloyal self-centred people ... why can't they be like Warren Buffett who thinks he doesn't pay *enough* tax
5. need-a-crash said...
The article hints at possible exemptions for property "George Osborne, may introduce transitional measures to soften the blow, such as taper relief, or possibly classifying buy-to-let properties as a business investment, allowing them to be taxed at a lower CGT rate."
I know everyone on here hates private equity firms, but at least they actually employ people, whereas BTL don't even do that. So I don't see why property should get an exemption and private equity firms shouldn't.
6. doomwatch said...
BTL is not a business. It is income derived from other people's misery. Holiday Lets (not holiday HOMES, big difference) shouid be classed as a business, as at least they employ people and bring BUSINESS to the local area.
We should also do away with the concept of "main home" as this is bonkers. CGT should be base on how MANY proopertites tyou OWN, not on timing. e.g. it is possibly the case that an individual can own just one home & rent out (to live in) somewher else, but the only property they own is currently viewed by HMRC as a 2nd home, and galls under CGT.
Total sh1te favouring those who know the rules and play the game e.g. MPs.
7. doomwatch said...
Apologies for the typos, I'm half cut.
8. drewster said...
chrisch (original poster),
Under our present system it's individuals who are taxed, not the properties. If a UK-based investor sells his BTL house for £100,000 more than he paid for it, he pays CGT on that gain. However if the investor is based abroad, then he does not pay UK tax; even though the properties are in the UK. Of course most other countries have CGT too, but some don't, notably Switzerland, Singapore, the Isle of Man, Belize, and Barbados, to name but a few. Hence if you're expecting to make a very large capital gain, it might be worth moving abroad for a few years.
9. mander said...
George Osborne, may introduce transitional measures to soften the blow, such as taper relief, or possibly classifying buy-to-let properties as a business investment, allowing them to be taxed at a lower CGT rate.
And so the coalition can easily break up. Lib Dems represent young families in this country and CGT will be put up for a reason.