As readers of previous blogs will know, I have advocated the Capital Gains Tax on sales for some considerable time as I feel that this is the best means of controlling the housing market and building up a property fund to assist during turbulent economic times. I was very pleased to see that the National Institute for Economic and Social Research has issued a paper calling for the levying of a refined CGT on sale as a substitute for Stamp Duty and a means of controlling volatile house price rises. The Institute goes on to advise that the current system is the worst of all worlds.
I hope the Government listens to this as I am more and more of the belief that a Capital Gains Tax on profit on the sale of all properties including sole or main residences would be a much fairer, transparent and economically beneficial tax rather than Stamp Duty which penalises a prospective purchaser – watch this space.
Partner – Head of Property