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Capital Gains Tax on residential property including main home?


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HOLA441

Whilst this is being soft tested in the  Mail https://www.dailymail.co.uk/news/article-8523663/Rishi-Sunak-orders-capital-gains-tax-review-emerges-facing-322billion-budget-deficit.html which means it won't happen, certainly not on main homes. 

I did wonder if they might be looking at some other similar measure to which people might then feel relieved by in comparison with full blown CGT. 

eg Remove private residence relief on 'former' main home that are now second homes, Higher CGT on BTL etc

Edited by Mikhail Liebenstein
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HOLA443
5 minutes ago, TopBanana101 said:

This is where the portfolio landlord gets thrown under the bus .... the MEW that funded their expansion has trapped them in this market.

That's interesting. 

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HOLA446
39 minutes ago, Si1 said:

That's interesting. 

Cash-flow is their only friend.

High LTV IO brigade will be hit first probably in this order:

  1. HMO (lower income - higher mortgage costs)
  2. Holiday lets (lower income, fraudulent Bounce-Back Loan applications, future lock-downs)
  3. BTL sold to Ltd companies in unapproved structures to avoid CGT.
  4. Portfolio residential BTL (Increase in LTV value caused by reduced capital values because of the above).

They simply can't afford to pay the tax bill on disposal as they've already spent the money!

This will explain better than I can: https://www.taxinsider.co.uk/property-investors-watch-out-for-the-capital-gains-tax-trap

I suppose they can do a 118 and move offshore for 5 years, but that loophole is very easy to close.

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HOLA447

I feel like this is a massive missed opportunity about having a massive tax shake up.

Something that encourages income generation and does not preserve wealth accumulation so much.

We are still tinkering with the same old bs: CGT / SDLT.

Media is to be blamed too. They easily confuse income and wealth. 

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1 hour ago, longgone said:

Just tax everything other than cash since its trash already. Stamp duty when you sell not buy.

 

No stamp duty please, it stops people moving and means you end up with this blocked up low transaction market with no true price discovery and families trapped in places they don't want to be.

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HOLA4410
1 hour ago, winkie said:

Some kind of wealth tax has to be in the offing.......income tax paye and spending vat has been taxed to death, makes it almost not worth working or spending any longer.;)

+1 2nd home taxation is inevitable at this point. Those that haven't got the memo the stamp duty holiday is the window for 2nd home owners to sell portfolios ahead of this deserve what they get.

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HOLA4414
11 minutes ago, Freki said:

Yeah, I would not bank on that though. The old money has a lot of power in this country. Leasehold is one of the best example of this kind of legacy. 

BTL isn't really old money though. Long term landowners shouldn't be hit proportionately anywhere near as much as shorter term leveraged pwoperdie miwwionaires 

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21 minutes ago, qejunkie said:

+1 2nd home taxation is inevitable at this point. Those that haven't got the memo the stamp duty holiday is the window for 2nd home owners to sell portfolios ahead of this deserve what they get.

Better cut welfare. and have taxes on 3rd kids. What about those who have worked their butt  for decades  and have  second homes as a pension?. Still easier to steal from hard workers and give to fast breeders. - and help population replacement.

Envy is such an ugly trait and condoning theft worse.  Go and live in N Korea if you love communism, saddo

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Just now, Gribble said:

Better cut welfare. and have taxes on 3rd kids. What about those who have worked their butt  for decades  and have  second homes as a pension?. Still easier to steal from hard workers and give to fast breeders. - and help population replacement.

Envy is such an ugly trait and condoning theft worse.  Go and live in N Korea if you love communism, saddo

That's the thing hun, what you are describing is not really what happened. People got lucky to buy cheap, they did not work harder than the current generation. Stop using the only 2 neurones you use to type that BS like a Pavlovian dog.

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1 minute ago, Gribble said:

Better cut welfare. and have taxes on 3rd kids. What about those who have worked their butt  for decades  and have  second homes as a pension?. Still easier to steal from hard workers and give to fast breeders. - and help population replacement.

Envy is such an ugly trait and condoning theft worse.  Go and live in N Korea if you love communism, saddo

You weren't forced to invest in a second home as a pension. The government has been sending a very clear message by offering tax efficient pension savings, generous tax free stocks and shares ISA allowance.

It is better for us all if you invest your money in productive companies for a return rather than outbidding potential owner occupiers on property so you can rent it back to them.

If we didn't have a cost of housing crisis, I would normally agree with you. But you've seen it coming, and in fact if you own more than one home you're party of helping to cause it, so you were silly if you expect this not to become a future tax target.

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HOLA4418
2 minutes ago, Gribble said:

Better cut welfare. and have taxes on 3rd kids. What about those who have worked their butt  for decades  and have  second homes as a pension?. Still easier to steal from hard workers and give to fast breeders. - and help population replacement.

Envy is such an ugly trait and condoning theft worse.  Go and live in N Korea if you love communism, saddo

"2nd home as a pension" - why don't you diversify? This is your last chance. I've exited my BTLs in the last 3 years.

 

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5 minutes ago, Freki said:

That's the thing hun, what you are describing is not really what happened. People got lucky to buy cheap, they did not work harder than the current generation. Stop using the only 2 neurones you use to type that BS like a Pavlovian dog.

Yawn. The hypocrisy from a writer of drivel. Seems like I have touched a nerve. Truth hurts eh? ? hun

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HOLA4420
5 minutes ago, dugsbody said:

You weren't forced to invest in a second home as a pension. The government has been sending a very clear message by offering tax efficient pension savings, generous tax free stocks and shares ISA allowance.

It is better for us all if you invest your money in productive companies for a return rather than outbidding potential owner occupiers on property so you can rent it back to them.

If we didn't have a cost of housing crisis, I would normally agree with you. But you've seen it coming, and in fact if you own more than one home you're party of helping to cause it, so you were silly if you expect this not to become a future tax target.

Its a free country  - people can invest their hard earned savings where they like.  Stock markets are liable to crash.  

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40 minutes ago, dugsbody said:

No stamp duty please, it stops people moving and means you end up with this blocked up low transaction market with no true price discovery and families trapped in places they don't want to be.

but it focuses their mind on being more careful on what to spend on so it may actually reduce houses prices. 

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5 minutes ago, Gribble said:

Yawn. The hypocrisy from a writer of drivel. Seems like I have touched a nerve. Truth hurts eh? ? hun

What truth? that the boomers are selfish bastards that earned an unfair amount of wealth through no hard work whatsoever? The stealing from hard worker is happening right now, 45% marginal tax rate I have to pay. Every additional penny I get half of it goes to HMRC. Way to promote hard work! 

Edited by Freki
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3 minutes ago, Gribble said:

Its a free country  - people can invest their hard earned savings where they like.  Stock markets are liable to crash.  

Of course property markets aren't allowed to crash because they're owned by boomers. **Precious**

 

Edited by Si1
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HOLA4424
1 minute ago, Gribble said:

Yawn. The hypocrisy from a writer of drivel. Seems like I have touched a nerve. Truth hurts eh? ? hun

The truth is true.

BTL is an excellent target for HMRC. In fact it is a perfect target, as you can't hide/move the asset and you need to deal with the Government (Land Registry) to trade it.

Zoopla should put gunsights icons on all their listed rental properties!!! Happy Shooting!

 

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