Increase in CGT 'could help first-time buyers'

Date:Thursday 10th June 2010
Author: Susanna Kavka

First-time buyers could find that they benefit from an increase in capital gains tax (CGT), a sector commentator has claimed.

Managing director at FirstRungNow.com Helen Adams suggested such a move could discourage buy-to-let landlords from buying up properties that may be better suited to people just getting on to the housing ladder.

"Anything that helps to leave more properties that are more affordable for first-time buyers is going to be a good thing. We would agree with that as a proposal," she remarked.

She explained that an increase in CGT for individuals who have second properties has been mooted and this could make a positive difference for people at the lower end of the housing market.

Last month, the Conservative-Liberal Democrat coalition government in the UK stated that it would be reviewing non-business CGT rates and altering them so they are more similar to the levies applied to income.