Ex-Housing Minister calls for changes to Landlords Capital Gains Tax


Former Housing Minister, Dominic Raab has called for Capital Gains Tax (CGT) for landlords to be scrapped on properties up to £35,000 where they have sold the property on to a sitting tenant.

Conservative thinktank, Onward, wrote a report in 2018 which suggested the money saved from Capital Gains Tax should be split fifty-fifty between landlord and tenant, with Raab taking this further suggesting a third to the landlord and two thirds to the tenant.

The MP suggested that the money given to the tenant could go towards their 10 per cent deposit.

Raab calls for sanctions to be imposed on developers who fail to build houses at the rates they promise, when they purchase a plot and secure planning permission. In an interview with the Daily Telegraph he also identified further solutions to fix the broken housing market:

  • More government land to be released, with councils given more power to sell sites to smaller developers 
  • Design by tender after outline planning permissions are received
  • Fewer impositions on councils who fail to get enough homes built
  • Scrapping stamp duty on homes worth less than £500,000
  • Digitise land registry records and support more modular housing

Raab could be in the running as the next Conservative party Leader, should current Prime Minister Theresa May resign as per her Brexit promise.

What Propertymark is doing

ALRA Propertymark responded to Overcoming the Barriers to Longer Term Tenancies consultation,where we called for Capital Gains Tax roll-over relief to apply where the proceeds of a rented property are re-invested in the private rented sector as it similarly applies in other areas of business.

To read more on this story: https://www.arla.co.uk/news/april-2019/ex-housing-minister-calls-for-changes-to-landlords-capital-gains-tax/