The government is being urged to introduce a new ‘chance to buy’ scheme which would offer capital gains tax (CGT) incentives for landlords to sell their properties to long-term tenants, as a way of addressing the UK’s housing crisis
The proposals have been put forward by centre-right think tank Onward. It proposes that existing buy-to-let properties would be eligible for 100% CGT relief if the property is sold to a sitting tenant who has lived there for three years or more.
The gain from this tax relief would be split evenly between the landlord and the tenant, giving the landlord a windfall when they sell and the tenant thousands of pounds towards their mortgage deposit.