capital gains taxBuy to let’ landlords are denied a tax break on their property profits as the Chancellor excluded them from a big capital gains tax cut.

Drawing the battle lines in the property market, George Osborne announced in the Budget that he is significantly cutting tax rate paid on capital gains -but not for investors who are selling property -at very similar time as he confirmed a stamp duty hike for second homes but gifted homebuyers extra help.

George Osborne announced he would not extend the cut in capital gains tax to buytolet sale properties. While the basic rate will be reduced from 18 per cent to 10 per cent, residential property was deliberately excluded from the tax cut that will see investors in other types of asset types benefit from capital higher rate gains tax being reduced from 28 per cent to 20 per cent.

Releasing more homes onto the market and helping homebuyers struggling with high prices, it had been rumoured before the Budget that part of the Chancellor’s motivation for cutting CGT will be to encourage property investors to sell up.

Such a move would have chimed with his stamp duty hike on buy to let and second homes that will see an extra 3 per cent surcharge added -confirmed in today’s Budget.

Industry experts said the decision gonna be ‘prudent’ as extending the tax break that will arrive on April 6 to property investors could have sent house prices tumbling as it would have made it cheaper for landlords to sell up and flood the market with properties for sale. Experts said the Chancellor’s decision is aimed at trying to avoid a collapse in property prices.

Many landlords are keen to sell up following previous tax changes announced by the Chancellor that mean their investments are no longer financially viable.

Landlords are being hit by a reduction in mortgage amount interest tax relief they can claim -which will move down from being able to offset interest against tax and their own tax rate to being capped at 20 per cent.

Jeremy Leaf, a former RICS chairman and north London estate agent. He continued. Nevertheless, in denying landlords a reduction in CGT on property sales, the Chancellor is trying to avoid a collapse in property prices. This could have helped first time buyers as more property comes onto the market but the rush to sell could also have contributed to a collapse in house prices.

One can understand the Chancellor’s prudence and it could turn out to be a shrewd move but it will annoy landlords who will feel victimised.

Brokers and estate agents went on to suggest that the move will ultimately hurt ‘first time’ buyers through higher house prices, in addition to tenants as landlords try to recoup their losses.

Stuart Gregory, of mortgage brokers Lentune Mortgage Consultancy, agreed that extending the tax cut to buytolet properties would are an incentive for more investors to sell. It would have increased properties supply on the market,’ he said.

Lucian Cook, head of residential research at estate agents Savills.

Richard Lambert, of the National landlords Association. He still depends on the tax revenues he expects to pull in from them, the steady upward ratchet of taxation on landlords over the past year shows that George Osborne is determined to bear down on the private rented sector. It is that may well put upward pressure on rents. Keeping capital old rates gains tax on residential property may put further pressure on the supply of private rented homes against the backdrop of rising demand.

Demonstrating that his allegiances now lie firmly with homebuyers and not property investors, Mr Osborne revealed extra saving help for ‘firsttime’ buyers. Those looking to buy their first home were also given a boost in the Budget with a Lifetime announcement Isa.

With a 1 p up for every 4 that they save, it will enable ‘firsttime’ buyers under 40 years old to save up to 4000 a year ‘taxfree’ into it to get a maximum 1000 bonus.

When the withdrawals includuing the bonus and gains will be ‘taxfree’, the savings and bonus can be used wards a deposit on a first home worth up to 450. It can be kept to age 60 and used as a retirement pot.

Adrian Anderson, director of mortgage brokers Anderson Harris. Go out and earn your own, you will feel better for it. Of course nobody is for government controlling your lives but on the other hand asking for handouts constantly from said governments. Actually, the lifetime Isa should encourage saving but if property prices rise at identical rate as they are, it is still going to be incredibly difficult for firsttime buyers to get onto the housing ladder. Then again, people been used to bad habits in this great country.

Kill off all btl these blood suckers who destroy areas with there filth and uncaring renters bringing misery to good honest people.

Hope they all bleed money. Needless to say, perhaps all the whiners who are running it as a business could name one business sector that is excluded from capital gains on company disposal assets.

Another question is. What about the landlords who’ve worked hard for their money to be able to buy the buy to let’s? Everyone would do it if they had the money, simple

And what about them? By going out in the big, bad world as a self employed person you end up realising it would been better to get a mundane, steady job that would have made it possible to get the mortgages denied over the years to the self employed. I’m sure it sounds familiar.|Doesn’t it sound familiar?|Sounds familiar?|right? We don’t all have a mummy benefit and daddy prepared to stump up money to help their offspring either.

Peter Singleton, Walsall, United Kingdom, 3 months ago Not sure where you get the idea mortgages been denied to the self employed?

If you can prove your income with accounts or self assessment returns it’s not a problem at all.

All very well persecuting landlords who will have to pay capital gains on property appreciation and most BTLs’ are not prime residences in wn smarter part, how ever the big property winners are the likes of Gideon’s mates who have massive salaries and access to huge amounts of cheap money, they are owner occupiers who make multimillion pound tax free profits on their prime central London homes,should there be a cap on such tax free profits, in some cases these are over 50 million? Increasing capital gains on property will have the opposite effect.

The major housebuilders are already complaining that they will now be able to build FEWER new homes around the UK as the modest additional sales they used to get from some BTL buyers will now disappear.

Isa rather than dealing hassle with tenants who don’t have the common sense to operate a central heating system, change a light bulb, replace a battery in a smoke detector or open a window to prevent condensation. This will worsen the housing shortage. Now please pay attention. As an accidental landlord I can’t wait for interest rates to return to normal so I can sell the property I bought with the lump sum from my pension. In some urban markets this constraint will make some developments unviable. I’m sure it sounds familiar.|Doesn’t it sound familiar?|Sounds familiar?|doesn’t it? At least I haven’t been asked to change the bog roll.

It is discriminatory to pick on one sector for tax hikes in capital gains. Central London prime BTL is now crashing. London readers share an opinion on this? To say that some people are allowed a capital gain and others are not is against human rights.

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