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Trade bodies urge Treasury to ‘tread with care’ over CGT review
Estate and letting agent trade bodies have raised concerns with the government over the review of Capital Gains Tax (CGT) ordered by the chancellor of the exchequer last week.
Chancellor Rishi Sunak has asked the Office for Tax Simplification (OTS) to examine how gains are taxed in comparison to other types of income.
Sunak asked the OTS to look at areas where the current CGT rules can distort behaviour or cause outcomes that were not the intention of the tax policy.
CGT is currently charged at 28 per cent on the sale of second homes and buy-to-let properties.
Propertymark, which includes the National Association of Estate Agents (NAEA) and the Association of Residential Lettings Agents (ARLA), said it believes the government should “tread with care” and unintended consequences should be taken into account.
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In a statement on ARLA’s website, the trade body said: “Increasing rates further for investment properties could reduce appetite from landlords who provide vital housing to the private rented sector, which will have a detrimental impact on supply.”
Propertymark said it will continue to raise its concerns to the government and has urgently requested that if CGT is to be increased, a thorough review of the implications needs to be undertaken before a decision is made.