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MARTINX9

Treasury weighing up new help to buy scheme - exempting landlords who sell to their tenants from paying capital gains tax

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More bright ideas - but no apparent obligation for the landlord to actually sell to their tenant so how many properrties will actually change hands - the estimate is 88,000 a year (yes that exact!!)?

"The chancellor, Philip Hammond, is considering using this month’s budget to introduce a “good landlord” tax break rewarding investors who sell properties to sitting tenants amid a housing crisis that has left 40% of young adults unable to buy a home.

The Treasury is weighing up a new Help to Buy proposal whereby landlords would not have to pay capital gains tax when selling up to tenants who had been living in a property for at least three years. The plan has been drawn up by the right-wing thinktank Onward, which suggests the £1.3bn-a-year cost of the policy could be covered by curtailing other tax perks enjoyed by buy-to-let investors."

 

https://www.theguardian.com/money/2018/oct/08/treasury-weighs-up-tax-break-for-landlords-who-sell-to-generation-rent

 

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easy way to get tenants, say you will sell to them in 6 months cheaply, then never sell, just jack the rents up instead. 

Also can you imagine how some desperate landlords will be trying to pressure tenants to buy as their only option to avoid negative equity. Threats of increased rent if they dont buy etc. 

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More tinkering......maybe the Tennant wouldn't want to buy, they are renting under them so they can save to buy better.....as others said they are renting because they would be unable to obtain the mortgage required, unstable or erratic employment or credit history not strong enough all be it the rent has always been paid....

Something more radical needed.😉

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How many more ideas are we going to go through until the only option left for consideration is let prices fall? 🙄

We have to be there soon, definitely starting to scrape the bottom of the barrel if we're considering tax breaks on people who earned 6 figures while milking those younger than them as much as possible.

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1 hour ago, guest_northshore said:

Offer price would just rise to previous + tax break/2. Not corrupt at all.

Yes that's what I thought, they want the help to buy effect, if not to get prices up at least to stop them falling. And how many tory mps are private registered landlords again - over 40%, isn't it. And still over 20% of Labour mps. Why don't the journalists ever mention that?!

edit - oh, that's right, because we might then start asking how many journalists are private registered landlords!

Edited by North London Rent Girl

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The cgt to be split between landlord and tenant who would then use it as part of a mortgage deposit? But of course, income reinvestent is the best way to extend the duration of any ponzi scheme!

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Be fair guys, the people most in need of a tax cut right now are owners of multiple properties. They've had a rough time of it for the last couple of decades.

Tories gonna Tory.

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Ideal legislation for those who have bought and rented to a family member, e.g. a child at university.

It might even be worth housing a trusted relative (son/daughter?) as a tenant for at least three years (maybe at a peppercorn rent) then selling to them. The said son/daughter tenant could also sub-let for tax free rent-a-room income during their tenancy. 

You could even make them a short term loan to buy the property from you. They then immediately sell it and both transactions are CGT free. They then repay your loan. This could save tens of thousands in CGT.

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Where have the Tory fanboys gone? I remember them on here after GE2017 telling us all that the Tories were geniuses for self-reinvention and that they would do whatever they needed to do to win. Is this the great Tory rebirth as the party of homeownership? Tax breaks for landlords?

You can fool the media but you can't fool renters. People know whether they own the roof over their heads or not, and it's front of their mind when they go into that polling booth.

Edited by Dorkins

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32 minutes ago, zugzwang said:

The cgt to be split between landlord and tenant who would then use it as part of a mortgage deposit? But of course, income reinvestent is the best way to extend the duration of any ponzi scheme!

Quite. What does being told that you will be able to exit the market without paying CGT do to the incentive to pile into BTL versus other asset classes which have no such CGT exemption? Does it:

a. increase it? or

b. decrease it?

Edited by Dorkins

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4 minutes ago, Dorkins said:

Where have the Tory fanboys gone? I remember them on here after GE2017 telling us all that the Tories were geniuses for self-reinvention and that they would do whatever they needed to do to win. Is this the great Tory rebirth as the party of homeownership? Tax breaks for landlords?

You can fool the media but you can't fool renters. People know whether they own the roof over their heads or not.

 

Yes, it does rather look like the Tory's are completely out of ideas, and marginal tinkering around the edges and daft policies like this are going to the order of the day until they are booted out of power for at least 2 elections. Unfortunately, the opposition aren't all that great either (though, as with many people, right now I'm an ABTT voter - Anyone But The Tories, despite the fact that I voted for them in 2010. My mistake).

Edited by dpg50000

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6 hours ago, MARTINX9 said:

More bright ideas - but no apparent obligation for the landlord to actually sell to their tenant so how many properrties will actually change hands - the estimate is 88,000 a year (yes that exact!!)?

"The chancellor, Philip Hammond, is considering using this month’s budget to introduce a “good landlord” tax break rewarding investors who sell properties to sitting tenants amid a housing crisis that has left 40% of young adults unable to buy a home.

The Treasury is weighing up a new Help to Buy proposal whereby landlords would not have to pay capital gains tax when selling up to tenants who had been living in a property for at least three years. The plan has been drawn up by the right-wing thinktank Onward, which suggests the £1.3bn-a-year cost of the policy could be covered by curtailing other tax perks enjoyed by buy-to-let investors."

 

https://www.theguardian.com/money/2018/oct/08/treasury-weighs-up-tax-break-for-landlords-who-sell-to-generation-rent

 

That's assuming there's going to be capital gains to tax 

kBCnO2Xo_400x400.jpg

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1 minute ago, dpg50000 said:

Yes, it does rather look like the Tory's are completely out of ideas

The Tories have plenty of ideas for how to give money to landowners.

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4 minutes ago, Dorkins said:

The Tories have plenty of ideas for how to give money to landowners.

True - I should have qualified my statement with "out of ideas to gain back the middle class whose taxes are supporting both ends"

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6 hours ago, MARTINX9 said:

Terrible reporting on that Guardian article:

Quote

Because the gain is affected by property prices and their historical growth, a tenant in London could receive £19,500 under the scheme.

Tenants wouldn't receive anything, the CGT break is for the landlord.

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1 minute ago, Steppenpig said:

Sounds like a bung for all the landlord MP's.

Tories entering the 'stash as much as you can' stage of a failing regime.

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2 hours ago, North London Rent Girl said:

Yes that's what I thought, they want the help to buy effect, if not to get prices up at least to stop them falling. And how many tory mps are private registered landlords again - over 40%, isn't it. And still over 20% of Labour mps. Why don't the journalists ever mention that?!

edit - oh, that's right, because we might then start asking how many journalists are private registered landlords!

It's a great idea for MPs, who rent London homes out to their mates/other MPs - bet most of the MPs' tenants have been with them for > 3 years, and there would be a lot of CGT due on the sale of their 2nd home...

edit: Steppenpig beat me to it!

Edited by highYield

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  • 149 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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