Research conducted by the National Landlords Association (NLA) shows an estimated total Income Tax contribution by individual private landlords in excess of £3.8bn per annum. This says the NLA, is more than double Tesco’s entire annual tax bill.
The research finding assumed that typical deductions are made for regular maintenance, finance costs, and other miscellaneous legal and management expenses, so it is calculated that landlords in England have a combined taxable income in excess of £19.1bn.
Even if all the individuals involved paid only the basic rate of Income Tax says the NLA, this would equate to an estimated annual contribution of £3.8bn in Income Tax alone or £1,668 per landlord, before additional liabilities such as Stamp Duty Land Tax, Capital Gains Tax, VAT, and the Additional Property Levy are taken into account.
By way of comparison, the UK’s largest supermarket chain, Tesco PLC, paid £1.63bn in 2018.
Commenting on the research findings, NLA CEO Richard Lambert 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. This is in stark contrast to the relatively small sums paid by many major retailers and online giants.
“The NLA’s conservative estimate of landlords’ tax liability suggests that they pay more than twice as much in Income Tax alone than Tesco’s entire tax bill and a staggering 62 times Amazon’s Corporation Tax bill in the UK.”
The research detail provided here: