NLA calls for tax exemptions to apply to landlords

Wednesday, May 12th 2010

The National Landlords Association (NLA) is calling on the government to make certain tax exemptions applicable to buy-to-let property owners.

Capital gains tax rates could be set to rise, with 18 per cent set fees on non-business assets being replaced by income tax bands at various levels.

The plans are thought to have been introduced to fund a rise in the income tax exemption threshold to £10,000.

But capital gains when a landlord sells a residential property should be included in any exceptions that businesses and entrepreneurs may benefit from.

NLA chairman David Salusbury said: "We are concerned that a tax increase of this nature will act as a barrier to further investment in residential property just at a time when there is an urgent need for more housing."

Landlords are running a business and any profits from doing so should be included in exemptions, he added.

During the campaign for the general election, Nick Clegg, leader of the Liberal Democrats, publicly pledged his support for an increase in the council tax threshold to £10,000, which he said would benefit a large amount of Britons.