Rise in capital gains tax 'won't be issue' for long-term buy to let landlords

03 June 2010

The increase in capital gains tax (CGT) on non-business assets will not be a problem for buy to let landlords who are going to continue in the trade on a long-term basis, an expert has said.

Ellie Irwin, press officer at the National Landlords Association (NLA) claimed that the hike would only be an issue for those wishing to sell their properties soon but this will not be the case for many in the private rental sector.

"Professional landlords are in it for the long term, running their portfolios as a business, rather than using them as short-term speculation as a way to make capital gains," she commented.

The coalition government agreed on May 12th to raise personal allowances on income tax to take the strain earners on a lower or middle wage.

An increase in CGT to around the levels of income tax will go part-way to funding this policy.

Asked whether the NLA believes the leaders have made the right decision, Ms Irwin declined comment but added that there are "more appropriate" ways to balance the budget.

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