22^nd Mar 2019

According to a trade body England's private landlords could be paying the government an estimated yearly £3.8bn in income tax.

The trade body's research shows that landlords combined taxable income in England in 2018 was £19.1bn, this is after finance, legal, management, various expenses and regular maintenance costs were taken into consideration

The trade body has estimated that if all landlords paid £1,688, the basic rate of income tax, then this would be the equivalent of a minimum contribution to the government's coffers of £3.8bn annually.

The estimate does not include the extra fees that landlords must pay such as, capital gains tax, VAT, stamp duty and the additional property charge.

A spokesperson for the industry body said: “Far from being subsidised by the taxpayer, private landlords make a significant contribution to the public purse. Furthermore, changes to landlord taxation made in 2015 are forecast to increase HM Treasury’s receipts from landlords by almost £2bn – pushing total estimated Income Tax contributions to £5.7bn in years to come.

“These dramatic increases in landlords’ tax liabilities in the UK has led many to conclude that it is no longer possible to achieve a reasonable return on investment, prompting them to sell their properties and close their businesses.”


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