Changes to Capital Gains Tax could mean Landlords pay less.

In a recent blog from Savills looking at possible changes to Capitial Gains Tax, they looked back to when CGT and income tax were the same and there was relief for inflation gains, so CGT wasn’t applied on al, profits.

Lucian Cook, head of research at Savills, reviewing the recent report by the Office of Tax Simplification, found that the report suggests if the government reforms the tax it should look at a form of inflationary relief.

Cook said “In many cases, the tax payable could be less (not more) than under the current regime” Which could be some good news for a sector that has been subject to tax increases.

The OTS report does also suggest that Capital Gains Tax rate should be closer to the tax rate for a higher rate tax payer 40-45%.

We’ll have to keep an eye on what reforms or changes the government decides to move forward with (if any). After the damage of COVID-19 increases could be seen.

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