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fru-gal

Capital Gains Tax On Homes: It's Only A Matter Of Time

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Does anyone know what countries, and at what rate do people at the moment pay capital gains tax on their own owner occupied homes?

What European countries would be interesting. ;)

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Does anyone know what countries, and at what rate do people at the moment pay capital gains tax on their own owner occupied homes?

What European countries would be interesting. ;)

Comment under the article;

Every other country maintains a standard tax on the profit part on the sale of all residential properties; including primary residence. The French system is the best on a diminishing sliding scale of 25 percent over 25 years. So after 10 years you pay 15 per cent tax on the profit part: Fair? The person who sells his Belgravia apartment after 5 years say making a profit of over million pounds currently pays nothing today...crazy!
Edited by fru-gal

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If they brought it in who says the person non dom/resident overseas who bought in Belgravia would pay capital gains tax anyway....one rule for one another rule for those that know how to bypass the rules. ;)

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Can't happen soon enough! Biggest tax dodge in history.

They introduced CGT for foreign buyers from April 2015 so I guess it could be extended to main homes. If they do it early enough in Parliament then in 5 years time people will be used to it and they will get more votes from the priced out generation if they are seen to be doing something about the unequal housing situation where you can make huge amounts of money just because you were born at the right time.

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It might mean even fewer people selling their homes, thus less supply and greater market stagnation

Keep it in the family.......and build more homes for those that need/want a home to live close to where they work that is if they have to travel to work........eventually every house will change hands at some time.....we all are after all only renting anywhere for a short time.

Edited by winkie

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I wouldn't like CGT hitting people that have to move houses a lot because of jobs or personal circumstances. That would seem unfair to me. I haven't moved a lot by the way and don't think I ever will again.

But in principle I would like to see less taxes on work and more on non work income.

If you work for a living you have a tax free allowance of £10,600 then pay 20% tax +11% NI +12% NIERS (approximately)

CGT is just 18% for low rate and 28% for high with a tax free limit of £11,000.

Work doesn't pay

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Exhibit A: Asset friendly inheritance tax policy, Pensions with rolling tax free lifetime allowances and earlier access, BTL, Dual income mortgages, BTL tax breaks, Interest rates, Funding for lending, Newbuy guarantee, Firstbuy scheme, Homebuy, Help to buy, Help to buy 2, PFI, Housing benefit, Build now pay later scheme, New homes bonus, Affordable homes programme, Get britain building fund, Builders finance fund, Right to buy, Proposed building standard and regulation cost cutting, Looser residential planning approval rules for offices/commercial property, Releasing more public land for private rather than public profit uplift, New homes zero-rated for VAT, Build to rent fund, Stamp duty reforms, Rental deposit loan scheme, HTB ISA, Expropriating HA properties etc.

Exhibit B: CGT on homes??

Edited by northshore

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http://moneyweek.com/merryns-blog/is-it-time-to-charge-capital-gains-tax-on-homes/#

http://www.ft.com/cms/s/0/236624d8-f971-11e4-ae65-00144feab7de.html#axzz3dVknD2DQ

I won't quote and paste (I believe this is against HPC and FT guidelines) from the article above ^ (FT) but Gary Heynes of Baker Tilley is quoted as saying that PPR (Principle Private Residence) could be restricted and there might be some sort of cap on the percentage of gains that would be tax free when a main home is sold.

Edited by fru-gal

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It might mean even fewer people selling their homes, thus less supply and greater market stagnation

It is a very bad idea, we want more taxes on owning property and less on transactions. We should increase council tax to get rid of stamp duty and VAT on estate agent fees etc.

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It is a very bad idea, we want more taxes on owning property and less on transactions. We should increase council tax to get rid of stamp duty and VAT on estate agent fees etc.

Council tax is paid by tenants and little old ladies in multi million pound mansions do not pay it (because their income is too low, so they get CTB or they only pay 75% because they are the only person rattling around in the house). Why should i pay more council tax because my landlords "investment" has gone up in value?

Edited by fru-gal

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Taxes need to change behaviour to encourage better use of this scarce commodity, harsh though that may seem on a cursory glance of the narrow impact on the little old lady.

But how would increased council tax change behaviour? The landlord wouldn't care as the tenant would be paying the increase and the old lady wouldn't care because she would be getting CTB. The only behaviour that would change would be the tenant spending less because they have to pay more council tax. I don't think that is what you mean is it?

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There is no need to tax, just enforce LTV ratios, if you need to find a 20% deposit house prices will correct naturally and curb HPI.

So under this proposal the govt gets the tax via stamp duty and will also get the tax from any capital gains as well?

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It might mean even fewer people selling their homes, thus less supply and greater market stagnation

so if you want to get supply moving, I have a completely brilliant idea to flatten the housing market.

ie. allow local councils to adjust council tax vis a vis land registry prices for the area taken over a 3 year moving average.

it works like this.

prices go up 10% per year for 3 years...your council tax is going up 10% per year( that's fair!!)

we get house price crash and housing goes down 30% in 1 year after 2 flat 0% years

then the third year you will pay 10% less council tax.

it gives councils plenty of time to prepare and create a slush fund to tide them over the bad years- as long as they are not greedy/incompetent

no whinging or bail-outs, you had time to make contingency plans....if you fail the axe will swing and you get asset stripped and taken over by someone more able.

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Taxes need to change behaviour to encourage better use of this scarce commodity, harsh though that may seem on a cursory glance of the narrow impact on the little old lady.

IME this little old lady is mythical. I've known quite a few people reach times of life when the family move out, and they do downsize. Or in one case, stay put but convert the family home to two flats and rent out one of them.

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The other question here is that if you have the potential for capital gains you also have the potential for losses. So if you lose money on your house sale do you then get to take that off your income tax bill?

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Wouldn't this just result in house sellers and EAs ramping asking prices by the CGT amount?

......meaning higher stamp duty, fees, death duties.......the more you have got the more expensive it costs to keep. ;)

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