CGT rise 'leads to landlords considering selling'

News Category: Industry News

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The expected increase to capital gains tax has resulted in many landlords considering selling their properties, according to letting agent body Arla.

Operations manager Ian Potter explained that because the role landlords play in providing affordable housing is so important, they should be protected from any tax rises.

Chancellor George Osborne holds his first Budget speech tomorrow (June 22nd 2010), with tax rises expected to be announced along with public spending cuts as the coalition tries to cut the budget deficit.

Mr Potter said: "We would also like to see rollover relief introduced, so that landlords are not penalised when they a sell a property and purchase another."

He added that this would have the result of countering out a "historic lack of investment" into the private rented sector by the government.

Earlier this month, the letting agent body welcomed the coalition's decision to change rules regarding Houses of Multiple Occupation, stating that the move prevents landlords from being subjected to further amounts of red tape.

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