10:39 AM, 6th July 2017, About 5 years ago 3
The Residential Landlords Association (RLA) have reported on figures obtained from DUP MP Jim Shannon’s parliamentary questions requesting figures on HMRC self assessment tax brackets for the 1.9 million unincorporated individual landlords in the UK.
Of these 66% or two thirds of all individual landlords are basic rate tax payers, 30% are high rate tax payers and 4% pay the additional rate.
Thus Section 24 mortgage interest relief reductions are almost certain to push many landlords from basic to higher rate tax brackets challenging the controversial unproven assumptions by the Treasury that only 1 in 5 landlords will be affected by the changes. For further information on the debunking of this myth please see Dr Rosalind Beck’s report and the Treasury response below.
Recent addition National Landlords Association research work indicates the percentage of single property owning landlords who anticipate that they will be moved up a tax bracket has almost doubled since the end of 2016.
Mel Stride MP and Treasury Minister confirmed landlords are taxed more than homeowners by paying tax on rental income, extra stamp duty and capital gains tax all of which are not payable for main residence owners.
The RLA said, “This kills off once and for all assertions made by the former Chancellor, George Osborne, that tax rises on private landlords were about ‘levelling the playing field’ with home owners.”
David Smith, RLA Policy Director, said “the previous Chancellor increased taxes on the private rented sector based on what are now clearly false assumptions.
“It is especially worrying that Ministers cannot tell how many properties, and therefore tenants, could potentially be adversely affected by their policies.
“We need more homes to rent to meet growing demand. It is time that the tax system encourages rather than stopped housing growth cold dead.”
Click here to read the full RLA article.
Today I launch my comprehensive report: Section 24 of the Finance (No. 2) Act 2015: “the unjust legislation that will make the UK housing crisis much worse.” I would like to thank all of those who have contributed to this report, which I hope will have a significant impact in our campaign to reverse this… Read more
Below is the response from HM Treasury to the comprehensive report written by Dr Rosalind Beck on Section 24 of the Finance (No. 2) Act 2015 “the unjust legislation that will make the UK housing crisis much worse.” To Download the full report by Dr Beck Please leave any (polite) comments you… Read more
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