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Agreed re the letting relief. As I’ve said elsewhere the relief is likely to be in point only where a room or rooms has/have been let to the exclusion of the owner. This is going to result in additional calculation of a fair and reasonable apportionment to establish the gain attributable to letting. Tax simplification? Ha.
Wouldn't surprise me if there are amendments as it passes through the committees.
It's all too airy-fairy.
Probably. But as I also said elsewhere, I never got the point of the relief in the first place. Perhaps the proposed change is to reflect Parlaiment's original intention.
So how will this affect a householder who left his PPR in 2006 after 14 years living in it, lets it for 14 years, and sells it in 2020.
One would like to think the letting gain up to budget day would be allowed to stand, but the point mustn't be overlooked.
Yet a further example of Government's myopic tax greed to fuel their inherent profligacy!
CGT is a totally iniquitous tax in the first place. Price Inflation is caused by Government's utter incompetence to operate the economy properly.
All real asset values rise in lockstep with monetary inflation: which is caused, directly, by overprinting money and failure to discipline financial services.
When CGT was first introduced, by Wilson, it was intended ONLY to ensure capital gains from trading activities be taxed, as speculators were shifting activities into capital gains as against income and thus avoiding tax.
Progressively, CGT's scope was widened as Government's became evermore desperate for money to waste!
Thus CGT, now, is simply and only a tax levied on the public against the results of Government's own incompetence.
Switzerland, Hong Kong, Malaysia, Singapore, New Zealand, amongst a host of obvious tax havens, have no capital gains tax in principle.
Idiots such as Hammond forget, many people are compelled to live elsewhere (Pub Managers; Vicars etc) and obviously let their home to defray costs. Changes of job or tenure may well mean temporary residence in the main home, until the next placement.
I heartily disagree with this.
"Yet a further example of Government's myopic tax greed to fuel their inherent profligacy!"
There is no evidence that the private sector delivers public services more efficiently. Look at the PFI disasters, the collapse of Carillion, and the broken US healthcare system (the NHS is a middling performer on international leagues).
"CGT is a totally iniquitous tax in the first place. Price Inflation is caused by Government's utter incompetence to operate the economy properly."
a) Some assets inflate more than others.
b) Zero inflation is not desirable, as it reflects a stagnant economy with no investment opportunities and hence no sensitivity to the price of money.
c) The biggest policy lever over inflation - central bank interest rates - is not controlled by the government.
"All real asset values rise in lockstep with monetary inflation: which is caused, directly, by overprinting money and failure to discipline financial services."
House prices have risen ahead of general inflation. There's no evidence that quantitative easing has affected house prices, though there is evidence that it has cut the coupon on corporate bonds (i.e. - I agree with you on that narrow point).
"Idiots such as Hammond forget, many people are compelled to live elsewhere (Pub Managers; Vicars etc) and obviously let their home to defray costs. Changes of job or tenure may well mean temporary residence in the main home, until the next placement."
What costs? What about the people who bought a house 30 years ago for £35,000, and can now sell it for £700,000?
Clearly, you love CGT
Now, why do you believe the Thatcher government brought in Indexation?
"House prices have risen ahead of general inflation. There's no evidence that quantitative easing has affected house prices, though there is evidence that it has cut the coupon on corporate bonds (i.e. - I agree with you on that narrow point)."
Did I say it had? Conflation of argument.
The core reason house prices have risen to idiotic level, has been Gordon Brown's total failure to control consumer borrowing; "Liar" loans (Self-Certs) and mortgage lenders competing on a specious value market, and offering LTVs up to 140%: tenors of 40 years etc.
The old rule of thumb was a mortgage borrower could expect a loan of X3 of Gross Salary: work this out! It is wholly dysfunctional; and therefore, not sustainable.
"The biggest policy lever over inflation - central bank interest rates - is not controlled by the government."
Nice idea! Forget the MPC; Base Rate et al, is set according to the political economy. If Base Rate rose to its correct level, then Britain would collapse!
Also ask how and why there is a serious disparity between Sterling LIBOR and Base Rates and why the spread between deposit rates and borrowing rates is so vast?
By 2003, the ONS annual state of the UK's capital report, demonstrated clearly, in excess of 66% of the TOTAL Capital Value of the UK was represented by residential house values!! Ludicrous situation.
Personally, having been invested in speculative residential property and weathered (And lost serious capital) through three Boom-Busts driven by inflated asset values (Heath-Barber: Thatcher-Lawson: and finally the Daddy of 'em all, Blair Brown), I fear you are seduced by false metrics.
With regards to house prices there have been many periods when demand has exceeded supply. Hence the crazy price increases. A neighbour of mine recently had ten offers for his property He was then able to accept the largest offer resulting in attaining £20000 above the asking price.
When you consider the number of ' deemed occupation periods " available extending the PPR relief,
this fiscal CGT imposition seems fair to me. I do think the final 9 months is a little harsh.