Landlords are worth more than double Tescos in tax

by Property 118

9:27 AM, 12th March 2019
About A week ago

Landlords are worth more than double Tescos in tax

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Landlords are worth more than double Tescos in tax

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



Comments

Mike

10:09 AM, 12th March 2019
About A week ago

Assuming all tenants paid their rents on time, and not occurred any rent arrears and were not taken to courts, where they would be given free legal representation (Free Duty Solicitors earning fat salaries) paid for by Tax Payers, how much more would the Government have in their coffers as landlords would pay more tax if they were paid full rent on time, and tenants were not given free legal aid, think about that.
And think about how the austerity measure brought about the bedroom tax to save some money, which cost many lives as many HB tenants, who took their own life as they did not want to downgrade or be forced to move away from an area where they had spent most of their lives, did the Government think of their well being, their health, safety, or their interest , their welfare?
Yet they are churning law after law against landlords and making it tougher for the landlords and more costlier for tenants to rent houses now, who is the real enemy of tenants?
You know the answer, its the tenants very own Government, not the bastard landlords as one Lord Peer said.

Mick Roberts

10:15 AM, 12th March 2019
About A week ago

Reply to the comment left by Mike at 12/03/2019 - 10:09
And all that tax HMRC & Govt & this country has lost from direct payment of rent to Universal Credit tenants who may spend it on the black market where no tax is about.
If the DWP paid the rent properly as it should be to the Landlords bank accounts for it's intended purpose-RENT-then 20, 40, 45% in tax would could be going straight back to Govt.
But u carry on IMBECILES in Universal Credit & DWP, & keep chucking good money away u ignorant morons. Opps have I gone off topic.....

David Price

10:37 AM, 12th March 2019
About A week ago

Reply to the comment left by Mick Roberts at 12/03/2019 - 10:15
Mick look at this from the governments perspective, would you rather have the tax on a londlords income or the tax on bottles of whisky? Then paying the tenant direct starts to make good commercial sense.

Mick Roberts

10:50 AM, 12th March 2019
About A week ago

Reply to the comment left by David Price at 12/03/2019 - 10:37There is that, but then there is paying no declared income on drugs etc.

Mike

11:55 AM, 12th March 2019
About A week ago

I strongly suspect that duty solicitors being paid for by tax payers money (Legal Aid) representing tenants who have defaulted rent payments, are running a scandal, even when they know that there is a little chance a tenant in massive rent arrears have any real grounds to get away. I saw my tenant being forced to take on a duty solicitor even though he said twice he did not need one. The court clerk had to really persuade him and told him 3 times that it is free and it won't cost him anything, so do you want one, he reluctantly said OK.

Do i smell a rat hare, I do, its tax payers money, let us grab it! someone nominating defendants may be getting a cut of this public money! I see a big scandal here. The more representations duty solicitors get the more fat they get, regardless whether the case goes defendants way or the claimants way, they will get their piece of cake guaranteed.


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