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Landlord Tax scheme could cost HMRC millions in lost income - claim

It’s been suggested that a Tory manifesto policy could create a tax loophole that would cost HMRC millions of pounds in lost revenue.

The Conservatives are suggesting that if they win the July 4 General Election they would declare a two year ‘CGT holiday’ for landlords who sold their investment properties to their sitting tenants.

The idea is designed to convince landlords to free up more housing stock, and also benefit long-term renters by increasing their chances of getting on to the housing ladder.


But Graham Boar - a partner at UHY Hacker Young, a national accountancy group, - warns that this risks creating a major tax loophole:

“The proposed CGT relief for landlords selling properties to tenants will be ripe for abuse unless the law is drafted very carefully. There’s a risk that landlords selling properties will structure them as tenancies leading to sales, avoiding huge amounts of Capital Gains Tax.”

“A landlord could also sell a property ‘on credit’ to a tenant, who could then sell it on with no gain and pay back their debt to the landlord. Either way, HMRC would miss out on huge amounts of tax.

“Drafting the law in a way that avoids the risk of tax avoidance is likely to make it very complex and difficult for taxpayers to understand. Nobody wants to see an even more complicated tax system in the UK.”

HMRC data shows that £1.7 billion in Capital Gains Tax was raised in 2022/23 from sales of second or additional homes. The majority of these are sales of investment properties by buy to let landlords.

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  • George Dawes

    Bit of good news for a change

  • Neil Moores

    It won’t happen. It makes too much sense.

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    It not happen too though cos I think labour- Starmer will float in to No 10.

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    IMO the chance of a particular LL wanting to sell to a particular tenant & that tenant being able to want & afford to buy that property is so low that hardly any would be sold. The last tenant who left to buy could only afford a house half the value of the one she rented from me!

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    Fantasy 🧙 . They could come up with any crackpot idea…. ( this isn’t one). They are out on July 5th.

  • John  Adams

    Sunak is toast, on the radio telling Sky he had it hard as a child as they didn't have Satellite TV...and apologising for being late as D-Day over ran... If you want to destroy a political party you're doing a better job than Nicola Sturgeon ever could.


    Probably done deliberately. Sunak has 'no skin in the game' in our country. He'll soon be gone post election.

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    Well if the government makes them sitting Tenants in Private Property and with the huge numbers on some kind of Benefits and Housing support they will not be buying or going anywhere thank you very much.
    Every landlord lost is a huge loss to the Revenue all that lovely 40/45% like taking candy off a child, no more 60% tax on your personal allowance, no more double c/tax, no more double Stamp Duty, no more billions from licensing Schemes, no more big fines, Penalties or Repayment Orders, goodness me what happened to the queues at the Courts no clogging up, now what have they done no more soft money for the judiciary, did they kill the golden goose .

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    Indeed Michael, biting off their nose to spite their face.
    They are a bunch of clowns, but sadly not funny.

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    An accountant complaining about a loophole? What a disgrace to the profession he is. No doubt Graham Boar will now be shunned by the profession.😂😂😂

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    It's not a good idea, it's just another example of incompetent and completely unjoined up thinking. This policy would inevitably create a massive loophole, which while helping us landlords to sell, would in the long run serve nobody well.

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    Am I missing something? Why do they think that selling a house to a tenant is freeing up housing stock. Same house, same occupants the only thing that has changed is the ownership of the property.


    I thought the same 😂 but if in their cluelessness they benefit some landlords…. All good.

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    It's not going to happen, as the Tories, should I say the Liberal Democrats, aren't going to get back in. Regardless, tax is government theft.

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    • G W
    • 12 June 2024 13:25 PM

    More worrying is labours housing review has suggestions including that landlords could only sell to landlords to keep the number of houses for rent in stock….. plus landlords would have to adhere to whatever regulations they want to enforce

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    If the tenant could afford the deposit to buy they would be home owners by now. Where does Sunak think the deposit money is coming from? He lives in a different world to the real one where money is no object. Anyway if tenants had their deposit nothing to stop them going on to Rightmove and buy a house from there. There are plenty of houses for sale.

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    As Thehairy Piker says, tax is a government tax. Wait for it. Keir Starmer and his team of thieves will make it even easier to steal from the lanlords, what they would call as law in Britain. Acting Robin Hood, whilst he has stashed away his own cash. He is no pauper. UK will be become a total lefty while Europe has moved towards right. I shall have to emigrate, but not easy with a property managed by myself. KS knows he will win because everyone has had enough of Tory, not because of any of his unsaid policies. This accountant is total daft. Is he working for the government?

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    I had one tenant buy my property in 2019. She had only stayed there for a 3 to 4 months and wished to buy it when I said I wanted to sell. She had received a large sum of money from her grandmother, who felt she wanted to pass on her money before she passed away. I sold it to her at slightly cheaper price than I would have received from an investor, who had made the offer afterwards. So only ones, who have rich and generous relatives will be able to purchase from landlords.


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