Proposals to increase Capital Gains Tax (CGT) would freeze the rental housing market making it less responsive to tenant demand. That is the warning from the National Residential Landlords Association ahead of the Budget on 3rd March.
With the Office for Tax Simplification proposing measures to equalise CGT with income tax rates, the NRLA is highlighting research which found that 72 per cent of private landlords said that the tax was a major disincentive to sell property on the open market. Increasing it would serve to freeze the market making it far less responsive to changing needs from renters. This includes the shift in demand out of city centres to properties in suburbs, towns and villages, as noted by Rightmove.
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