link to ringley website
  • Home
  • About Us
    About us & leadership Awards Savings for Clients Case Studies Green Management Strategies Market Overview Leasehold Reform Campaign Money Back Guarantee
  • Our Services
    • Asset Management
      • UK Asset Management
      • Project Monitoring
      • ESG Consultancy & Implementation
      • PropTech & Living Sectors Platform
      • Marketing Insights
      • Resident Journey
      • Stabilised Assets
      • UK Build to Rent
      • UK Later Living
      • UK Co-Living
      • UK Student Accommodation
      • UK Single Family Housing
    • Block Management
      • Overview - London
      • Overview - Wales & West
      • Overview - Southwest
      • Right to Manage
      • Freehold Management
      • Resident Management
      • Estates of Houses
      • Ground Rent Collection
      • How to change agent?
      • Block Management Services
      • Can't afford an agent?
      • Legal & Tribunals
      • Top 10 Tips
      • Report an incident
    • Commercial Management
    • Law
      • Overview
      • Meet The Team
      • Recommendations
      • Right to Manage
      • Lease Extensions
      • Freehold Purchase
      • Absentee Freeholder
      • Court Appointed Manager
      • Conveyancing - Wales
      • Conveyancing - England
      • Service Charge/Rent Arrears Recovery
      • Company Secretary
    • Property Valuations
      • Overview
      • Loan Security
      • Company Accounts
      • Lease Extensions
      • Freehold Purchase
      • Rent Reviews
      • Ground Rent Investment
      • Development Valuations
      • Expert Witness & Litigation
      • Tax, Trusts & Accounts Valuations
      • Trading Business
      • Compulsory Purchase
      • Residential Valuations
    • Engineering
      • Overview
      • EWS1 Consultancy
      • Asbestos
      • Contract Administration
      • Fire Assesment
      • Homebuyer Survey
      • Building Survey
      • Schedules
      • Party Wall Matters
      • Principle Designer
      • Disability Access Audits
      • Small Building Works
      • Fire Door Inspection
      • Insurance Valuations
    • Property Accounting
      • Finance
      • Quote For Service Charge Accounts?
      • Property Accounting Law
      • Accounting Updates
      • To Audit or Not?
    • Plant & Facilities Management
      • Plant & Facilities Management
      • Fire Door Inspection APP
      • Fire Safety Update
    • Site Staffing Solutions
      • Ringley Integrated Site Staff Solutions
    • Leasehold Guidance
      • Overview
      • Right to Manage
      • Purchasing The Freehold
      • Court Appointed Manager
      • Absentee Freeholder
  • Insights
    Asset Management Articles Block Management Blogs Publications BTR Rental Market Blogs Customer Insights FAQ - Ask Our Experts Insurance Calculator
  • Get In Touch
  • Work with us
  • Portal Login
New tax threat could hit landlords hard

Written by: Maryanne Bowring 12/11/2020
  514       0
Responsive image

A rather un-conservative report has been released today by the Government that, if acted on, threatens to double the tax on the sale of second homes and rental properties. This is likely to hit the Conservative party’s own voters hard but could raise £14 billion in much-needed tax revenue to help pay for the Covid crisis.

Once again, landlords who have already faced a number of tax increases in recent years, are in the frame. The tax hike would mean cutting existing exemptions on property sales and doubling current rates of Capital Gains Tax paid on the sale of properties that are not the owner’s main residence.

The Treasury's own Office for Tax Simplification, which has prepared the report, says £14 billion could be raised by cutting exemptions and doubling rates. It proposes bringing CGT into line with income tax and ditching the £12,300 exemption threshold.

The current system benefits landlords because many are able to assess when to sell a rental home and organise their finances so that any profit they make on the property comes just in below the threshold. Even when CGT is paid, the rate is still half that of income tax.

However, despite the temptation to use landlords as easy pickings for increased tax revenues at a time when they are badly needed, any move in this direction could have unintended consequences.

First, any hike in CGT will discourage landlords from selling properties, reducing transactions and consequently reducing the amount of CGT that goes to the Treasury.

Second, any additional CGT directed at landlords will add to their already hefty costs, encouraging them to increase rents. In a sector where demand is already outstripping supply and more people are likely to turn to renting as the post-pandemic economy falters, this is far from a positive outcome.

And third, while the majority of the country with no second home to sell, would be largely unaffected, landlords who would feel the full impact of any change in this direction are likely to now be considering their options. They will be actively looking for tax efficient ways to protect their property assets, again potentially reducing the sums that end up in the Treasury’s coffers.

The Treasury has been quick to emphasise – probably for the benefit of Tory backbenchers and voters – that the Government is under no obligation to act on the recommendations of the OTS report. Landlords will be hoping that post-pandemic, recovery is swift and this report sinks without trace. We will be watching this story with interest.



POPULAR POSTS

Don't forget the smoke alarm!

Know your onions - and your tomatoes!

Severe weather ahead - is there an emergency plan for your block?

PlanetRent: Omit an inventory at your peril

Government pledges to keep renters safe

RECENT POSTS

Service Charges Are Not For Profit: What ManCo Directors Need to Know

Service Charges and Paying by Instalments: Should a ManCo Allow Monthly Payments?

Service Charge and Buildings Insurance: The Risk of Under-Insurance and Claims Averaging

Life After Right to Manage: Understanding Service Charge Accounts vs RTM Company Accounts

Service Charge Arrears: Forfeiture or County Court Judgement?


Blogs on similar property topics

ASSET MANAGEMENT
Will the Chancellor pay out to help out?
Following on from yesterday’s blog about rent arrears, today we hear that the National Residential Landlords Association is lobbying Chancellor Rishi Sunak to include support for landlords in his upcoming spending review. Due to the Covid-19 outbreak there will be no five-year spending review in November. Instead the Chancellor will focus on the year ahead and the NRLA is determined that property owners in the rental sector get a look-in.Hards...

Read More

ASSET MANAGEMENT
Student Housing: PBSA Enjoys another Decade of Demographic-Driven Demand
Student Housing: PBSA Enjoys Another Decade of Demographic-Driven DemandHigher education institutions and providers of purpose-built student accommodation (PBSA) have navigated a highly challenging operating environment throughout the COVID-19 pandemic. However, investment markets remained optimistic because of the positive demographic outlook.

Read More

ASSET MANAGEMENT
Team member in the spotlight: Ali
Hi Ali, Thank you for taking the time for this interview. Can you introduce yourself?Hi, my name is Ali. I have been at the Studio Workspace for just under a year now. I was introduced to The Studio Workspace by a colleague of mine. We were working on a creative meetup and were looking for spaces for a partnership.We went to the Studio Workspace, really liked how it looked, how friendly people were. So we decided to go for an interview and met...

Read More

Meet our Expert Property Commentators

Mary-Anne Bowring FTPI FRICS FARLA FCABE Founder/Head of Asset Management

Strategic partnerships, holistic delivery/ opportunities, growth, value engineering, thought leadership

Ian Barber MD BTR Mobilisation & Leasing

Runs HQ & site lease-up teams. Drives rent pricing, mobilisation, marketing, happy residents!

Jon Curtis MRICS Head of Building Engineering

Chartered Building Surveyor. Lectures on EWS1 & building safety. Runs CapEx programmes.

Kate Robinson MTPI MD Blocks/FM Management (London Region)

Master plan setup, ops and staffing and resident engagement. ISO45001 champion.

Lee Harle Partner Ringley Law

Plot conveyancing. Debt litigation. Group Company Secretary.

Natalie Birmingham Helpdesk Support Manager

Trainer & Helpdesk Manager: people, systems,contractors. ISO45001 supply chain accreditation.

Chris Georgalis MRICS Head of Commercial Valuation

Chartered Valuer. Rental valuations: retail, leisure. IRR modelling and valuations for secured lending. Compulsory purchase & rent reviews

Nichola Pughe MRICS Head of Residential Valuation

Chartered Valuer. Rental development & mixed use valuations, IRR modelling. Leasehold enfranchisement specialist


Insights, articles & blogs
INDEX

PROPERTY
BLOGS

LANDLORD
BLOGS

PROPERTY
ARTICLES

E-BOOKS

inshights shared - link to planetrent blogs

Landlord blog
Read landlord blog
inshights shared - link to ringley blogs

Property blogs
Read property blogs
inshights shared - link to ringley articles

Property articles
Read property articles
inshights shared - link to ringley ebooks

E-books
Read E-books

Our Offices

link to ringley social media facebook link to ringley social media instagram link to ringley social media linkedin link to ringley social media x-twitter
  • Back
    Office
  • Ringley House
  • 1 Castle Road
  • London
  • NW1 8PR
  • T: 0207 267 2900
  • Customer
    Office
  • Ringley House
  • 47 Rochester Place
  • London
  • NW1 9JL
  • Manchester
  • 11 Swan Street
  • Northern Quarter
  • Manchester
  • M4 5JJ
  • T: 0330 174 7777
  • Cardiff
  • 122 West Bute Street
  • Cardiff Bay
  • Cardiff
  • CF10 5LJ
  • T: 0330 174 7747
link to ifsm website link to tpos website link to rics website link to ukgbc website link to governmanet security industry authority website link to alep website
  • What we do
  • Asset Management
  • Block Management
  • Facilities Management
  • Property Law
  • Surveying / Valuation
  • Building Engineering
  • Financial Services
  • Managing Agents
  • Block Management Locations
  • Co-working
  • Renting & Letting
  • Right to Manage
  • Contractor Management
  • Space to Work
  • Fees and Client Money Protections
  • Ringley Group
  • About us
  • CSR / ESG
  • BusyLiving
  • PlanetRent
  • Talk to us
  • Careers
  • Ask a Question
  • Insights
  • Articles
  • Blogs
  • Subscribe
  • BTR & PRS Buildings

Emergency Lines

0207 428 2056

0207 267 2900

solutions@ringley.co.uk

Report an incident

read more link

All content © copyright 2025. Ringley Limited. All Rights reserved. Ringley Limited, incorporated and registered in England and wales.

Registered office: Ringley House, 1 Castle Road, London, NW1 8PR. Company No. 03302438

Terms of use | Privacy Policy | Modern slavery act | Health and Safety Policy | Anti Bribery and Corruption | COVID-19 risk assessment

Ringley Staff Dashboard
link to ringley social media facebook link to ringley social media instagram link to ringley social media linkedin link to ringley social media x-twitter
link to ringley social media x-twitter for small device
link to ringley social media linkedin for small device
link to ringley social media instagram for small device
link to ringley social media facebook for small device
  • Ringley Group
  • About us
  • CSR / ESG
  • BusyLiving
  • PlanetRent
  • Talk to us
  • Careers
  • Ask a Question
  • Insights
  • Articles
  • Blogs
  • Subscribe
  • BTR & PRS Buildings
  • What we do
  • Asset Management
  • Block Management
  • Facilities Management
  • Property Law
  • Surveying / Valuation
  • Building Engineering
  • Financial Services
  • Managing Agents
  • Block Management Locations
  • Co-working
  • Renting & Letting
  • Right to Manage
  • Contractor Management
  • Space to Work
  • Fees and Client Money Protections
  • Email: solutions@ringley.co.uk

  • Emergency line 1: 0207 428 2056

  • Emergency line 2: 0207 267 2900

  • Report an incident
  • Our Offices
  • London
  • Ringley House
  • 1 Castle Road
  • London
  • NW1 8PR
  • T: 0207 267 2900
  • London
  • Ringley House
  • 47 Rochester Place
  • London
  • NW1 9JL
  • Manchester
  • 11 Swan Street
  • Northern Quarter
  • Manchester
  • M4 5JJ
  • T: 0330 174 7777
  • Cardiff
  • 122 West Bute Street
  • Cardiff Bay
  • Cardiff
  • CF10 5LJ
  • T: 0330 174 7747
Privacy Policy
Ringley Staff Dashboard
link to ifsm website link to tpos website link to rics website link to ukgbc website link to government security industry authority website link to alep website

All content © copyright 2025. Ringley Limited. All Rights reserved. Ringley Limited, incorporated and registered in England and wales. Registered office: Ringley House, 1 Castle Road, London, NW1 8PR. Company No. 03302438
Terms of use | Privacy Policy | Modern slavery act | COVID-19 risk assessment