Landlords 'should be included in tax exemptions'

Posted: 17 May 2010 13:49:31 GMT

Landlords could fall foul of a new income tax band system under the new government, experts have warned.

Members of the National Landlords Association (NLA) are concerned that the future of property investment could be under threat if the new scheme replaces the current capital gains tax (CGT) on non-business assets.

David Salusbury, chairman of the NLA, does not want any decisions to be made without proper consideration.

He said: "When landlords let property they are running a lettings business. We are calling on the government to ensure profits from this business activity are included as part of the exemptions."

There are also concerns from the NLA that the system will discourage property investors at a time when housing is desperately needed.

The income tax bands will be set at 20, 40 and 50 per cent as opposed to the current CGT flat rate of 18 per cent.

CGT is paid when selling or giving away assets that have increased in value since their original purchase.


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