CGT to go up on property?

[SE10]

 

"The Treasury is discussing increasing capital gains tax on property."

https://order-order.com/2023/09/06/exclusive-treasury-considering-capital-gains-on-property-increase/

[Fishfinger]

I can't see that happening it would be electoral suicide.

[anonguest]

5 minutes ago, SE10 said:

 

"The Treasury is discussing increasing capital gains tax on property."

https://order-order.com/2023/09/06/exclusive-treasury-considering-capital-gains-on-property-increase/

I assume they mean as applied to second properties and not primary residences (i.e. home that people actually live in)

Edited September 6, 2023 by anonguest

[winkie]

5 minutes ago, Fishfinger said:

I can't see that happening it would be electoral suicide.

Why, most people don't own extra property over the one they live in that is not subject to CGT.......others put their investments or savings in a CGT free wrapper such as an ISA or pension.....

[sta100]

6 minutes ago, Fishfinger said:

I can't see that happening it would be electoral suicide.

Nope, they already lost the landlord vote so may as well go all the way.

Edited September 6, 2023 by sta100

[Timm]

5 minutes ago, anonguest said:

I assume they mean as applied to second properties and not primary residences (i.e. home that people actually live in)

The Tories really hate LLs, don't they?

[anonguest]

8 minutes ago, Fishfinger said:

I can't see that happening it would be electoral suicide.

Indeed.

Even IF they did it asap, i.e. upcoming budget, then by the time it's implemented and money actually starts rolling in... it'll be too late to make an impact in rectifying the government balance sheet in time for any benefit to be tangible before the next election.

[Fishfinger]

10 minutes ago, winkie said:

Why, most people don't own extra property over the one they live in that is not subject to CGT.......others put their investments or savings in a CGT free wrapper such as an ISA or pension.....

The article didn't mention a second property and no I don't own a second one either..

[winkie]

7 minutes ago, anonguest said:

Indeed.

Even IF they did it asap, i.e. upcoming budget, then by the time it's implemented and money actually starts rolling in... it'll be too late to make an impact in rectifying the government balance sheet in time for any benefit to be tangible before the next election.

How would increasing capital gains tax impact you?

"The capital gains tax rate is 0%, 15% or 20% on most assets held for longer than a year. Capital gains taxes on assets held for a year or less correspond to ordinary income tax brackets: 10%, 12%, 22%, 24%, 32%, 35% or 37%."

How can tax on asset growth be less than income tax on work.....no gain no tax to pay, no problem.

[2buyornot2buy]

They float this all the time and pull back. This will be no different.

[winkie]

1 minute ago, Fishfinger said:

The article didn't mention a second property and no I don't own a second one either..

Not saying you do, tax on assets to be fair and to make working pay should be equal or more than tax on income and expenditure.....makes sense.

[Confusion of VIs]

32 minutes ago, anonguest said:

Indeed.

Even IF they did it asap, i.e. upcoming budget, then by the time it's implemented and money actually starts rolling in... it'll be too late to make an impact in rectifying the government balance sheet in time for any benefit to be tangible before the next election.

The immediate house price crash caused by even more BTLs coming onto the market would though. I suspect Labour would love them to do this, Tories take the flak for ther crash while Labour reaps the downstream benefits. 

[mspL4]

2 hours ago, SE10 said:

 

"The Treasury is discussing increasing capital gains tax on property."

https://order-order.com/2023/09/06/exclusive-treasury-considering-capital-gains-on-property-increase/

The key word here is "discussing", which is Common Garden Variety Politik for "Not going to do anything about it but want to sow that seed in the mind of the Dumb Fvcks of this Country in the hope that it results in votes"...it will & they won't.

[Bear Necessities]

3 hours ago, Fishfinger said:

I can't see that happening it would be electoral suicide.

Electoral suicide doesn't hit the same when they are already dead.

[Housepricecrash91]

4 hours ago, sta100 said:

Nope, they already lost the landlord vote so may as well go all the way.

Lol so true. 50% on second homes would be a good start

[70PC]

From Guido, same page

UPDATE:Treasury source insists this “ain’t happening” and this is not where the Chancellor’s head is at.

[PropertyMania]

they're going to ramp up tax on short term lets, that's close to 100% baked in

[VancouverGuy]

4 hours ago, winkie said:

How can tax on asset growth be less than income tax on work.....no gain no tax to pay, no problem.

That's the way it should be, for several good reasons:

- An investor in a company is creating jobs, and paying corporation tax - that's the bread'n'butter of Government receipts and a nation's quality-of-life.

- An investor is taking risk with their capital, an employee is not.

- A tacit acknowledgement of the long-term effects of inflation on an asset value.

- Typically, across someone's lifespan, they will have already paid tax on the capital before they invest it.

Whether it's good policy to consider residential housing to be investment-grade assets, is a whole different topic.

[fellow]

53 minutes ago, PropertyMania said:

they're going to ramp up tax on short term lets, that's close to 100% baked in

As in Airbnb?

[winkie]

36 minutes ago, VancouverGuy said:

An investor in a company is creating jobs, and paying corporation tax - that's the bread'n'butter of Government receipts and a nation's quality-of-life.

Not firstly, firstly it is to make money......if don't want to pay more tax on gain pay more to those doing the jobs that create that gain.

No quality of life if as we see social services breaking down, health, education and many crimes are never solved or prosecuted and many employees wages are requiring tax payer top ups..... wages not paying the mortgage or rents.....record numbers of people off sick, and record numbers of children not going to school.

36 minutes ago, VancouverGuy said:

An investor is taking risk with their capital, an employee is not.

An investor earned that money in different ways.....if earned from previous investment they pay less tax on that investment. An employee who pays full tax on their income can also be an inversor they have a choice to take a risk or not......same as any investor.

36 minutes ago, VancouverGuy said:

A tacit acknowledgement of the long-term effects of inflation on an asset value.

Time of winning and time of losing.....inflation is not always the same......equity gained on property was a free given, nobody worked for it, they might have worked to repay debt, historic debt has been very cheap, the rise in equity very high......a time when money is required to improve our country those with the biggest pockets should pay back some of that gain back into the public purse.

36 minutes ago, VancouverGuy said:

Typically, across someone's lifespan, they will have already paid tax on the capital before they invest it.

Everyone pays tax before they spend or invest money......most money earned is double taxed be it vat or fuel duty or council taxes....

 

[PropertyMania]

44 minutes ago, fellow said:

As in Airbnb?

yeah, exactly. there's way too many loopholes and it's generally under taxed vs long term rentals 

[PropertyMania]

56 minutes ago, VancouverGuy said:

That's the way it should be, for several good reasons:

- An investor in a company is creating jobs, and paying corporation tax - that's the bread'n'butter of Government receipts and a nation's quality-of-life.

- An investor is taking risk with their capital, an employee is not.

- A tacit acknowledgement of the long-term effects of inflation on an asset value.

- Typically, across someone's lifespan, they will have already paid tax on the capital before they invest it.

Whether it's good policy to consider residential housing to be investment-grade assets, is a whole different topic.

totally agree. in an ideal world, only consumption would be taxed

[staintunerider]

13 hours ago, PropertyMania said:

totally agree. in an ideal world, only consumption would be taxed

Isn't that how it worked in the early USA ? Taxes on certain goods etc paid for govt....no income tax....it was a way i guess of adhering to small govt...because the founders knew the govt would become a parasite on the people and swell monstrously in size....which it has....and they also knew once govt grew in size it would end up involved in foreign conflicts which it has...

I believe Florida in the only state closest to this model now.....

[wighty]

20 hours ago, SE10 said:

 

"The Treasury is discussing increasing capital gains tax on property."

https://order-order.com/2023/09/06/exclusive-treasury-considering-capital-gains-on-property-increase/

Better drop the price quick and sell up.

[btd1981]

Hopefully prices can significantly fall to help prevent savvy investors having to pay CGT on their 'hard earned' non-existent gains 🤣