Home Recent Landlord News BLT landlords hit in Budget with capital gains tax exemption restrictions

BLT landlords hit in Budget with capital gains tax exemption restrictions

Disappointment in the Autumn Budget

Buy-to-let landlords suffered another disappointment in the Autumn Budget with the announcement from the Chancellor Philip Hammond MP, that from April 2020 lettings relief will be reformed so that it will only apply where the owner of the property is in shared occupancy with the tenant and that the final period exemption will also be reduced from 18 months to 9 months.

Buy-to-let landlords suffered another disappointment in the Autumn Budget with the announcement from the Chancellor Philip Hammond MP, that from April 2020 lettings relief will be reformed so that it will only apply where the owner of the property is in shared occupancy with the tenant and that the final period exemption will also be reduced from 18 months to 9 months.

Sam Mitchell, chief executive officer of, online estate agents Housesimple said: “Another Budget, another blow for buy-to-let landlords. If the Chancellor wants to decimate the rental sector and send rents soaring, then he’s doing a very good job of achieving just that.

“Landlords are already leaving the sector because the government introduced a second home surcharge and cut mortgage interest tax relief. This latest double blow will send another shock wave through the industry and have more buy-to-let landlords scurrying for the exit door.

Lettings relief

“By cutting lettings relief and reducing the CGT exemption period to the final nine months of ownership, any homeowners who were thinking of let to buy as an option, will now have second thoughts as they’ll likely face a much larger capital gains tax now if they do. And anyone who rented out their previous home, and has equity locked up in that property, will now be thinking it’s best to sell sooner rather than later if they want to avoid a massive capital gains bill further down the line.

“This decision will cut off another source of rental properties, and good quality ones in many cases, as the landlord lived there before renting. Although cutting lettings relief might see more properties coming up for sale, the rental market will be the loser at the end of the day.”

Ian Dyall, head of estate planning at financial planning firm Tilney, said: “Three years ago, George Osborne hit property investors hard by announcing an increase on stamp duty for second homes and limited mortgage interest tax relief. Today’s announcement is another nail in the coffin for buy-to-let property investors.”

Source; whatinvestment – Samantha Downes

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