“It could make property affordable to everyone, especially for the young, and is a great way of raising tax revenue to bail us out after the coronavirus spending.”
Martin Stewart, director of the Money Group, agreed, saying the fact the “golden goose” of residential property remained “out of reach” from tax was an “outdated thought process”.
He said: “We are in a permanent debt-driven era and we may have no alternative to tax the crown jewels of home ownership. Most people won't like this concept, they prefer to pay to fund the NHS through 2 minute standing ovations.”
Some were less radical in their thinking but were still onboard with a shake up to the capital gains structure.
Alistair Cunningham, financial planning director at Wingate Financial Planning, said the problem with CGT was that it made no allowance for the period an asset was held, so penalised long-term investors with inflationary gains and rewarded rapidly turned-over assets.
He added that overall, however, a more progressive way for HM Treasury to extract funds would be to introduce a wealth tax, which may even allow the government to reduce or simplify income taxes.
Tim Harvey, director at HR Independent, hoped CGT could be simplified as well as increased.
He said: “It does not raise enough money at the moment. The relative ease with which one can buy and sell holiday homes at a low rate is crying out for reform to stop high income earners creating capital gains instead of income.
“It could also do with simplification. We have to run CGT calculations on gains made every time we use an Isa.”
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