BTL landlords pay out more CGT

Buy to let landlords quitting the sector or at least reducing their portfolios have helped the government pocket a record sum in Capital Gains Tax, according to accountants UHY Hacker Young. Buy to let is cited as one of three reasons why the UK’s CGT bills jumped 20% from £10.8bn to a record high of £12.9bn in the 12 months to the end of January. Other reasons include the cut to Entrepreneurs Relief, costing some business owners millions in extra tax when they sell their stakes, and the stock market rally in 2021, when the FTSE 100 rose 42% from its pandemic trough. UHY Hacker Young’s Phil Kinzett-Evans commented: “This is a very sharp increase in CGT largely paid for by an increase in taxes on entrepreneurs selling businesses. The last year has seen some entrepreneurs pay seven-figure sums in extra tax they weren’t expecting. Entrepreneurs’ Relief was a vital incentive for individuals to start and build businesses and the 90% cut the Treasury introduced has hit hard.

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