Landlords are worth more than double Tescos in taxMake Text Bigger
New research by the National Landlords Association (NLA) has found that the estimated total Income Tax contribution by private landlords exceeds £3.8bn annually, which is more than double Tesco’s entire annual tax bill and 62 times Amazon!
The research found that, assuming typical deductions are made for regular maintenance, finance costs, and miscellaneous legal and management expenses, landlords in England have a combined taxable income in excess of £19.1bn.
Even if all these individuals pay only the basic rate of Income Tax this equates 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.
Meanwhile, 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.”
Read more on this research and how the private rented sector is beneficial to the UK at landlords.org.uk/campaigns
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