Saturday, May 30, 2015

Capital Gains Tax overhaul

Telegraph: Capital gains tax on homes: it's only a matter of time

Comment: there will be a capital gains tax overhaul, and the 100pc tax relief on main homes will go - at least for some
We've always really been a policy change away from fixing this mess

Posted by tom101 @ 12:00 PM (5545 views)
Add Comment
Report Article

12 Comments

1. quiet guy said...

This is quite an amusing article in a way. Dyson recognises the problem but cannot swallow the solution because it is so politically unpalatable so instead he resorts to contorted tax rules in an attempt to square a circle. Until renters are the majority and express their concerns to politicians, I doubt much will change.

"in addition to the existing tax-free inheritance allowance, an extra allowance could be made for the family home. This would help wealthier families as well as those where there wasn’t much wealth apart from the main home."

Because if you chose to sink all your cash into property then you deserve help, right?

"Crippling shortages of land and labour are likely to ensure that housing undersupply persists"

If you're concerned about land shortages, a review of the green belt restrictions is required. There is still plenty of land fit for building in the UK.

As for labour, don't we have a free flow of cheap immigrant labour to keep blue collar wages down?

Saturday, May 30, 2015 12:38PM Report Comment
 

2. libertas said...

This is part of the Transatlantic Trade Agreement. They are seeking parity with USA, where you get capital gains tax on houses. But they also have mortgage tax relief.

This is a planted story by American Agents of the TTIP.

Saturday, May 30, 2015 01:14PM Report Comment
 

3. libertas said...

It would only work if we get mortgage tax relief plus an end to stamp duty. Otherwise, its just another scam layer of taxes.

Saturday, May 30, 2015 01:15PM Report Comment
 

4. icarus said...

Where in the TTIP is there anything about CGT on houses? Its proposals may be secret but (a) nothing about this has been leaked and (b) this is outside the scope of TTIP anyway. And in the US a couple can exclude up to $500,000 capital gain from the sale of a primary residence for purposes of calculating their taxable gross income. There is no CGT on rental property so sellers game the system by renting out the property before selling it. So it's no simple thing to transfer this system to other countries.

TTIP - I'd worry more about adulterated American food getting into Europe.

Saturday, May 30, 2015 02:31PM Report Comment
 

5. mister ed said...

@3

Those taxes pay for your government-funded job Libby. And pay those infrastructure projects which will make your house price rise by 10.5% a year.

Be careful we don't put an end to this scam.

Saturday, May 30, 2015 03:51PM Report Comment
 

6. bidin'matime said...

His proposal merely makes a bad situation worse: almost certainly there would be 'roll-over relief', whereby you only pay tax when you don't re-invest the proceeds in your next home (I believe the Swedes have this system) - so people would not only hang onto their oversized homes, living in cash-poor and asset-rich old age, so that they get the new IHT on homes, they'll be doing it to avoid CGT (not payable on death). A disaster for everyone (except, of course, those who want nothing other than to prop up house prices...)

Sunday, May 31, 2015 11:52AM Report Comment
 

7. mark said...

whilst camerons holiday the new pensions legislation comes in monday - more red tape killing small business

this country is finished

Sunday, May 31, 2015 04:55PM Report Comment
 

8. libertas said...

Icarus FREE TRADE INCLUDES FREE MOVEMENT OF PEOPLE.

This tax is a major reason why US citizens moving abroad renounce their citizenship. Tax renegotiations and reform will be on the table. It has not been leaked, but the story positioning is obvious and the change is logical. Just follow the money.

Sunday, May 31, 2015 07:20PM Report Comment
 

9. icarus said...

@8 first line. No, it doesn't. If the US sets up factories in Mexico it doesn't feel obliged to allow mass immigration from Mexico to the US.

2nd line. Where's your evidence - especially given what I wrote @4 about the way the tax works in the US. And there's nothing in the TTIP about harmonisation of taxes - that doesn't even happen in the EU.

Tuesday, June 2, 2015 08:26PM Report Comment
 

10. tenyearstogetmymoneyback said...

I quite like the Swedish idea. When thinking about stamp duty I have often thought that the tax should be on remortgaging.
It seems unfair that the person who has to move because of a job change etc pays stamp duty while the person who decides to remortgage and spend their unearned capital gains on a holiday in Las Vegas / flash car / or most likely the deposit on a BTL etc pays nothing.

Tuesday, June 2, 2015 09:52PM Report Comment
 

11. mister ed said...

@9
As Libby would no doubt say: "Never let the facts (or lack of them) get in the way of a good bit of rampant speculation or a conspiracy theory."

Tuesday, June 2, 2015 11:38PM Report Comment
 

12. This comment has been removed as it was found to be in breach of our Blog Policies.

 

Add comment

  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines
Username  
Admin Password
Email Address
Comments

Main Blog | Archive | Add Article | Blog Policies