Capital Gains Tax scrapped for landlords selling to tenants - Tory pledge
The Conservatives say they will scrap Capital Gains Tax for landlords who sell to sitting tenants.
The scheme would last for two years and is designed to convince landlords to free up more housing stock, and also benefit long-term renters by increasing their chances of getting on to the housing ladder.
The news comes in this morning’s Daily Telegraph which claims to have advance sight of some of the Tory manifesto, officially released later today.
The manifesto does not estimate how many people would take advantage of the change if implemented. It is set to cost only £20m a year, suggesting a limited uptake.
Other housing policies include the return of Help To Buy allowing first time buyers to get a mortgage with a deposit of just five per cent of the property price.
The Government would effectively provide a loan worth 20 per cent of the property; developers would also contribute some money, in a revision to the old scheme.
The Tories are also promising to permanently abolish stamp duty for first-time buyers on properties up to £425,000; at the moment this relief is due to end in March 2025.
At the manifesto launch later Rishi Sunak will say: “We Conservatives have had to take difficult decisions because of Covid. But we are now cutting taxes for earners, parents and pensioners.
“We are the party of Margaret Thatcher and Nigel Lawson, a party, unlike Labour, that believes in sound money.
“In this party, we believe that it is morally right that those who can work do work, and that hard work is rewarded with people being able to keep more of their own money. We will ensure that we have lower welfare so we can lower taxes.”
However, the Tories will not promise to cut or scrap inheritance tax, according to multiple sources, to the disappointment of some Conservatives who have long called for the move.
