Landlords selling up due to tax rise 'does not make sense'

Posted: 04 Jun 2010 12:19:01 GMT

Figures that suggest landlords are preparing to sell up to avoid an increased capital gains tax (CGT) have been questioned by an expert.

A spokeswoman for the National Landlords Association (NLA) has commented on a survey, which shows a quarter of landlords would consider putting property on the market if CGT were to rise.

Ellie Irwin, press officer at the NLA, believes it is more likely that landlords will hold on to their assets to plan for the long term.

"The figure seems very high and certainly doesn't fit with what our members are telling us," she said. "The CGT rise is only an issue if you plan to sell now."

A survey from LSL Property Services revealed more than 70 per cent of landlords would carefully consider future property investments if there was an increase in CGT.

It also found that 90 per cent of landlords oppose the government's proposal to raise the tax and 36 per cent see CGT as the most important aspect of property investment.


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