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Should HPI be taxed as Capital Gains

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Comments

  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    MFW_ASAP wrote: »
    Where does the money come from to build these houses at a price people can afford?

    Same place as everywhere else in the world: bank lending.

    Have you seen the cost of building a house? £100k will build you a huge place. The problem is the cost of building land. Farm land is less substantially than £10k an acre I believe. Building land many times that. Let people build on some farm land and the cost will fall dramatically. Don't just sit there expecting the Government to do
    it all for you.
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    MFW_ASAP wrote: »
    So if you sell an investment property and use the profits to buy a different property, you are not liable for capital gains? That's interesting - do you have a link to these rules?

    It'd be another tick in a box for my BTL investment criteria if this is the case.
    I'm not familiar with BTL tax rules. If we are looking at those then they are exempt for living in the property.

    Another way around the tax would be like in shares to bed and breakfast with the spouse every year.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    CLAPTON wrote: »
    the money comes from ordinary people borrowing from banks (mortgages)

    the price of most properties in the SE is significantly determined by the price of land with planning permission and government taxes / levies


    the solution is to free up more land for building and to reduce taxes on new builds


    From government borrowing and recovering the cost through rental and or not paying HB.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • ILW
    ILW Posts: 18,333 Forumite
    Generali wrote: »
    Build more houses.

    Simples.

    Or control the population.
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Any Gov that introduced capital gains tax on main homes might have to kiss goodbye to the possibility of winning the next election, I can't see where their motivation would come from.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    Generali wrote: »
    Same place as everywhere else in the world: bank lending.

    Have you seen the cost of building a house? £100k will build you a huge place. The problem is the cost of building land. Farm land is less substantially than £10k an acre I believe. Building land many times that. Let people build on some farm land and the cost will fall dramatically. Don't just sit there expecting the Government to do
    it all for you.

    Farm land is only "cheap" because it has restricted use.

    If farm land now becomes development land the price will go North. I accept that the the more that transitions the less it will appreciate.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    Farm land is only "cheap" because it has restricted use.

    If farm land now becomes development land the price will go North. I accept that the the more that transitions the less it will appreciate.

    of course it will become more expensive than the farm land but the more available to build the lower price of land with planning permission hence the lower price to buy a new build and with knock on effect to existing stock
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    CLAPTON wrote: »
    of course it will become more expensive than the farm land but the more available to build the lower price of land with planning permission hence the lower price to buy a new build and with knock on effect to existing stock

    Amazing who would have thought that.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • antrobus
    antrobus Posts: 17,386 Forumite
    MFW_ASAP wrote: »
    So if you sell an investment property and use the profits to buy a different property, you are not liable for capital gains? That's interesting - do you have a link to these rules?

    It'd be another tick in a box for my BTL investment criteria if this is the case.

    CG60970 - Roll-over relief: land and buildings
    http://www.hmrc.gov.uk/manuals/cgmanual/cg60970.htm

    I don't think BTL qualifies.
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    antrobus wrote: »
    CG60970 - Roll-over relief: land and buildings
    http://www.hmrc.gov.uk/manuals/cgmanual/cg60970.htm

    I don't think BTL qualifies.

    It doesn't it is classed as investment income, not business income.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
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