Letting agent body warns of Capital Gains Tax threat

News Category: Industry News

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Letting agent body Arla has warned of the potential threat to the rental market from changes to Capital Gains Tax.

The new government is planning to raise the tax to around the level of income tax, which could have a big effect on many letting agents and landlords.

Arla stated that the private rental sector could be threatened by any rise in Capital Gains Tax, as the market is already unstable due to the dearth of available properties.

Ian Potter, operations manager of Arla, said: "With the anticipated increase in Capital Gains Tax rates for non-business assets, we could potentially see a fire sale situation arise in the buy-to-let market with investors offloading properties."

He added that this could jeopardise the recovery, because the number of available properties for rent will diminish further.

The National Landlords Association stated that landlords must be included in any exemptions, as when they let properties they are running a lettings business.

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