RLA Survey

Mrs_pbradley936

I have just filled in a survey from the RLA (Residential Landlords Association). It asked for my opinion of a few things but the one that surprised me was if I would support the idea of not having to pay Capital Gains Tax if I sold to a sitting tenant.

Any thoughts on the implications of that?

michaels

Bring it on

chucknorris

Mrs_pbradley936 wrote: »

I have just filled in a survey from the RLA (Residential Landlords Association). It asked for my opinion of a few things but the one that surprised me was if I would support the idea of not having to pay Capital Gains Tax if I sold to a sitting tenant.

Any thoughts on the implications of that?

What do they mean by a 'sitting tenant' do they simply mean a tenant resident in a property, or a tenant in a 'protected tenancy'?

If it was the former, it would be open to abuse, to avoid tax, if it was the latter it would only affect a very small percentage of properties.

Generali

It sounds like an interest group setting up a bonkers plan to lobby to push down tax rates for their members TBH. I don't begrudge them, after all they're just doing what they should for their members, but it's a dumb idea and probably weeing into the political wind.

chucknorris

Generali wrote: »

It sounds like an interest group setting up a bonkers plan to lobby to push down tax rates for their members TBH. I don't begrudge them, after all they're just doing what they should for their members, but it's a dumb idea and probably weeing into the political wind.

I think this is a bit of weird idea, but I do think the current CGT rules are unfair, indexation should be used. It is crazy for someone to have to pay tax on what might be a nominal gain, but a real time loss (i.e. where the gain when taking inflation into account is actually a loss). IMO they had it right all those years ago when indexation was used, they shouldn't have changed it, it was fair to both the payer and the inland revenue.

daveyjp

Next they will be asking your opinion on introducing Right to Buy across the board. The RICS like it as an idea.

Propertyauthor

The RLA's idea is a good one. They are trying to look at ways that would encourage landlords who are looking / have to sell up to sell to their tenants who have been paying them rent or to first time buyers. Nothing wrong with that as an idea, better to give those that need homes most a chance to get on the ladder.

It's not that different to a policy of selling new homes at a 20% discount or via Help to Buy with a free 20% loan.

MJ12

I would not mind selling to my tenants under right to buy if:
1. I get market price or very close to it
2. I don't have to pay CGT; OR
My solicitor fees, stamp duty, and any fees associated the replacement (sell + buy) of the property are reimbursed, and CGT deferred.

I don't necessarily want to buy another property to replace the one sold to the tenant, but I would want to have the option to replace it.

If private right to buy becomes reality under the above arrangements though, in the years to come the government will probably call for this "CGT relief" to be removed to "level the playing field".

CLAPTON

Propertyauthor wrote: »

The RLA's idea is a good one. They are trying to look at ways that would encourage landlords who are looking / have to sell up to sell to their tenants who have been paying them rent or to first time buyers. Nothing wrong with that as an idea, better to give those that need homes most a chance to get on the ladder.

It's not that different to a policy of selling new homes at a 20% discount or via Help to Buy with a free 20% loan.

agreed

they are both stupid ideas

chewmylegoff

MJ12 wrote: »

I would not mind selling to my tenants under right to buy if:
1. I get market price or very close to it
2. I don't have to pay CGT; OR
My solicitor fees, stamp duty, and any fees associated the replacement (sell + buy) of the property are reimbursed, and CGT deferred.

I don't necessarily want to buy another property to replace the one sold to the tenant, but I would want to have the option to replace it.

If private right to buy becomes reality under the above arrangements though, in the years to come the government will probably call for this "CGT relief" to be removed to "level the playing field".

I would not mind the moon on a stick.