Why Is There No Capital Gains Tax Charge On Houses?

22nd April 2024

Why is there no capital gains tax charge on private houses in the UK? It's a question that's entirely fair to ask because we've all got so used to the fact that people who own their own homes don't pay capital gains tax when they sell them.

We just think it's normal, but it is in fact a tax exemption and it is an incredibly costly exemption - the second most costly exemption in the entire UK tax system In fact, costing in excess of £30 billion a year in the estimate of HM Revenue and Customs.

So, is it a good exemption? Does it achieve a useful outcome? Could we do something different?

Is it a good exemption? Well, yes, to an extent.

Read the full transcript at Funding the Future by Richard Murphy