CGT rise 'will deter buy to let landlords'

21 June 2010

Written by David Whittaker

An increase in capital gains tax (CGT) will discourage new investment from buy to let landlords, one organisation has said.

The Royal Institution of Chartered Surveyors (Rics) has called on the government to offer relief from the duties to the private rented sector, including its comment on the issue in its emergency budget submission.

Tax should be tapered according to how long a buy to let property has been owned, the body argued, while public sector assets much be managed in such a way that cuts are strategic and sustainable.

As many as 72 per cent of chartered surveyors reponsing to the May 2010 Rics Housing Market Survey believed that a rise in CGT would deter portfolio investment, with only 11 per cent predicting that the move would not affect the industry.

Also commenting on the duties hikes, press officer at the National Landlords Association (NLA) Ellie Irwin said there may be "more appropriate" ways to raise public funds, but the tax rises were unlikely to affect long-term landlords.

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