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Landlords Contributing more than Double Tesco’s Tax Bill, NLA Finds
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Private landlords are contributing more than double Tesco’s annual tax bill in Income Tax, according to findings by the National Landlords Association (NLA).
New research by the organisation has found that the estimated total Income Tax contribution by private landlords in England exceeds £3.8 billion annually, which is more than double Tesco’s entire annual tax bill.
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 £19.1 billion, the NLA reports.
Even if all of these individuals pay only the basic rate of Income Tax, this equates to an estimated annual contribution of £3.8 billion in Income Tax alone, or £1,668 per landlord, before additional liabilities, such as Stamp Duty (including the additional rate of 3%), Capital Gains Tax and VAT, are taken into account.
Meanwhile, the UK’s largest supermarket chain, Tesco PLC, paid £1.63 billion in tax in 2018.
Richard Lambert, the CEO of the NLA, comments on the findings: “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 £2 billion – pushing total estimated Income Tax contributions to £5.7 billion 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.”
He adds: “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.”
