Tax cut would give 88,000 tenants a year an average of £7,500 towards buying a home, think-tank says
Landlords should be given a major tax cut if they agree to sell their property to tenants, a new report has said.
The proposals would see landlords exempted from capital gains tax if they sell a property to renters who have been living there for at least three years.
Philip Hammond, the chancellor, is facing calls to include the policy in this month’s Budget.
Owners selling rental homes currently have to pay a 28 per cent rate of capital gains tax on the profits of the sale, which is seen as disincentive to sell.
The proposals have been drawn up by new right-wing think-tank Onward, founded by Theresa May’s former deputy policy chief, Will Tanner.
The change is designed to help free up properties for first-time buyers, while the three-year threshold could also incentivise landlords to offer longer tenancies.
Onward said the estimated £1.3bn cost of the policy could be funded by scrapping other tax breaks given to buy-to-let investors.