After my tirade yesterday against the first time buyers pressure group complaining against the fact that us the lowly landlord is keeping them from the dream of home ownership! I would remind them that the current tax system is biased massively towards homeowners and actually discriminates against landlords.
Homeowners - tax free investment
We all know that home ownership is a tax free way of investing in property. This is because homeowners pay no capital gains tax on disposal of their home. Landlords on the other hand get hit by a huge tax liability on disposal on their asset. What's fair about that?
Under the previous tax regime landlords were subject to Taper Relief which reduced the size of a landlords capital gains tax liability depending on how long they had held their property investment for. Old Gordon aka Mr Prudence scrapped the Taper Relief he introduced as Chancellor in favour of a flat rate 18% of capital gain tax in 2008.
So back to my point. PricedOut wingers. You think you have a tough time.
Landlords unfairly treated compared to homeowners
If you are a landlord rather than a home owner. Try paying a premium on your loan costs, then being only being able to borrow a maximum of 75% rather than 90% of the purchase price. Then to top it all getting hit by an 18% tax bill on disposal of your asset. That really is not fair!
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