A new report has found that the number of landlords selling their properties has increased significantly in the past year. The report, which analysed data from HM Revenue and Customs (HMRC), found that the number of landlords using the Capital Gains Tax (CGT) on UK property service to report disposals of residential property increased by 56% in the 2022-23 tax year compared to the previous year.
The total liability for CGT on residential property disposals also increased by 60% in the same period, to £1.8 billion.
The increase in property sales were attributed to a number of factors, including:
- The tightening of tax laws on buy-to-let properties, making them a less attractive investment.
- The threat of a property price crash, which could lead to significant losses for landlords.
- Rising costs, such as energy bills and maintenance, which are making it more difficult for landlords to make a profit.
Landlords who are considering selling their properties should carefully consider the potential implications of their decision. They should also make sure that they are compliant with all relevant tax laws.
The report’s findings suggest that the government’s efforts to cool the buy-to-let market are having the desired effect. However, it remains to be seen whether the trend of landlords selling their properties will continue.
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