CGT rise 'will not affect long-term landlords'

Date:Wednesday 9th June 2010
Author: Susanna Kavka

An increase in capital gains tax (CGT) will not pose much of an issue to property owners that do not to intend to sell their assets in the near future, according to the National Landlords Association.

Press officer at the NLA Ellie Irwin suggested there could be more appropriate ways of raising tax than increasing this particular levy, but declined to comment on whether the government is right to raise CGT.

But she suggested it is those landlords who had planned to sell their properties now who will be affected by such a policy.

Ms Irwin remarked: "Professional landlords are in it for the long-term, running their portfolios as a business, rather than using them as short-term speculation as a way to make capital gains."

These comments follow research by LSL Property Services, which indicated 71 per cent of landlords would reconsider their investment in such assets if CGT is increased.