The UK’s HM Revenue & Customs (HMRC) has seen a significant increase in capital gains tax (CGT) revenue as more landlords are selling their properties, according to an expert report. The report, released by the Chartered Institute of Taxation (CIOT), found that the number of landlords selling their properties has increased significantly over the past year, resulting in a significant increase in CGT revenue for HMRC.
The CIOT report found that the number of landlords selling their properties has increased by over 20% since the start of 2020. This is due to a combination of factors, including the introduction of new taxes on landlords, such as the 3% stamp duty surcharge and the restriction of mortgage interest relief. These new taxes have made it more expensive for landlords to hold onto their properties, leading to an increase in the number of landlords selling up.
The report also found that the increase in CGT revenue has been driven by higher-value properties being sold. This is because higher-value properties are subject to a higher rate of CGT, meaning that HMRC is able to collect more revenue from these sales. The report also found that the increase in CGT revenue has been driven by an increase in the number of landlords who are selling up and taking advantage of the CGT reliefs available to them.
The CIOT report concluded that the increase in CGT revenue is likely to continue as more landlords are expected to sell their properties in order to reduce their tax liabilities. This is likely to be beneficial for HMRC, as it will help to boost government revenue and reduce the burden on taxpayers.
Overall, the CIOT report has highlighted that HMRC has seen a significant increase in CGT revenue as more landlords are selling their properties. This is likely to be beneficial for HMRC, as it will help to boost government revenue and reduce the burden on taxpayers.