Should we exempt non-homeowners from Capital Gains Tax?

[feargach]

It's a response to the "rent is dead money" suggestion.

Also, it somewhat clears up the perceived unfairness of subsidising people's financial invenstments. You more or less cannot be an owner-occupier if you're single, but couples get a tax break to do so.

[revereie]

I really don't understand this topic at all. Are you proposing to get rid of CGT for everyone or just those who sell their homes (for which they're already largely exempt).

[feargach]

Exemption for those who have never owned a home, and are not in the top 20% of income.

Basically, mortgage tax relief serves as an unfair subsidy to those who are lucky enough to have the two incomes needed to get their hands on a valuable financial asset.

If you're single, a house is normally out of the question, so your only hope of getting your hands on a financial asset is to go into the stock market.

So how about a tax break to level the playing field?

Assuming the property bears are wrong, those who have bought a house with the kind assistance of the taxman will have a very wealthy retirement if they want it.

[revereie]

those who have bought a house with the kind assistance of the taxman

The taxman kindly assists with Stamp Duty and VAT.

Mortgage relief is nothing in the overall scheme of thigns and rental-yields on residential property are at historic lows so renters are getting a good deal here.

To say that CGT should be abolished for non-home-owners is one of the most nonsensical ideas I've ever heard - you've offered no real justification for it.

[feargach]

Well how about tax relief to the same scale as that applied to mortgages?

I know three couples who owe their ability to pay for current dwellings entirely to MTR, so the notion that it is "nothing" is not tenable.

[qtman]

Well how about tax relief to the same scale as that applied to mortgages?

I know three couples who owe their ability to pay for current dwellings entirely to MTR, so the notion that it is "nothing" is not tenable.

You get pretty much the same amount of tax relief on rent as you do on mortgage repayments, and has already been pointed out, home buyers have to pay Stamp Duty and VAT, which renters do not.

This is a silly suggestion.

[iago]

rent relief is the equivalent for renters as MIR for homeowners. I think you are confused on the CGT. you cant pay CGT (or be exempt from it) if you dont OWN anything to sell.

[rockofcashel]

we should double it.. might get the speculators out of the housing market .. about 5 years too late mind

[iago]

we should double it.. might get the speculators out of the housing market .. about 5 years too late mind

and create mass unemployment in the building sector, reduce govt receipts from the industry affecting the delivery of public services and in one foul swoop create a recession. oh yeah! Gerry Adams for Min of Finance! please stay up north!

[feargach]

Well how about tax relief to the same scale as that applied to mortgages?

I know three couples who owe their ability to pay for current dwellings entirely to MTR, so the notion that it is "nothing" is not tenable.

You get pretty much the same amount of tax relief on rent as you do on mortgage repayments, and has already been pointed out, home buyers have to pay Stamp Duty and VAT, which renters do not.

This is a silly suggestion.

MTR is only €300 a year per person?

Renters' payments go towards paying off the landlord's SD & VAT.

Also, mortgage payments go towards shelter AND a financial asset. Rent gets you temporary shelter, which can be withdrawn at a landlord's whim.

So even if MTR and rent relief are exactly the same, you get less from the latter so it is a de facto subsidy for mortgage payers, who are already a privileged class.

If nothing else, single people deserve something to compensate for the lack of an ability to enjoy stable housing.

The current situation is basically an ascendancy for attached people (which implies a certain amount of pressure on people trapped in abusive relationships to stay together or be punished with unstable housing conditions).