Healey urged to overhaul Capital Gains Tax
Summary
The NRLA is urging Chancellor John Healey to reform Capital Gains Tax in the upcoming Budget so that landlords are not taxed on property value increases driven by inflation. It argues that the current system discourages long-term investment in rental housing and should distinguish between real gains and inflationary price growth.
Why it matters
Tax treatment of disposals can influence landlord behaviour, portfolio turnover and the supply of rental homes. Surveyors involved in valuation, investment advice or landlord transactions may need to understand how any CGT changes could affect market sentiment and asset decisions.
Key points
- NRLA wants CGT applied only to genuine gains, not inflation-driven increases.
- The group says the current system discourages long-term property investment.
- It argues that most house price growth between 2015 and 2024 was inflation rather than real-terms gain.
- Short-term speculative property sales would not receive relief under the NRLA proposal.
Organisations:
NRLA, The Negotiator
Regulations:
Capital Gains Tax
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