Proposed Capital Gains Tax rise would hit rental sector

A political party has proposed that Capital Gains Tax be equalised with Income Tax - meaning landlords and investors who sold their buy to let or other rental properties would be hit with higher payments.

The Green Party says this idea would be one of a number of tax increases which, should it be elected, would raise £50 billion and £70b billion per year.

A wealth tax would be levied on individual taxpayers with assets above £10m million at 1% annually, while National Insurance contributions of 8% would be charged on income above the Upper Earnings Limit; overall, somebody earning £65,000 annually will pay just under £17 a week more in tax or £883 a year.

Specifically on the private rental sector, the party wants: 

- Rent controls “so local authorities can control rents if the rental market is unaffordable for many local people”;

- A new stable rental tenancy and an end to no-fault evictions “so tenants are secure in their homes and don’t have their lives turned upside down on the whim of their landlords”;

- A tenant’s right to demand energy efficiency improvements;

- So-called Private Residential Tenancy Boards “to provide an informal, cheap and speedy forum for resolving disputes before they reach a tribunal.”

The Greens put much emphasis on domestic energy efficiency and the party says: “Elected Greens will push for a local-authority-led, street-by-street retrofit programme to insulate our homes, provide clean heat and start to adapt our buildings to more extreme climate conditions.”

This would mean investment of £29 billion over the next five years to insulate homes to an EPC B standard or above; an additional £4 billion over the next five years to insulate other buildings; and £9 billion over the next five years for heat pumps and other low-carbon heating systems for homes and other buildings.

It would also want all new-build homes meet Passivhaus or equivalent standards and house builders include solar panels and heat pumps on all new properties.

The Green Party also pledges 150,000 new social homes every year through a mix of build and the purchase and refurbishment of older housing stock. Right To Buy would be scrapped for council tenants.