Landlords pay £3.8bn in income tax: NLA

Private landlords in England pay an estimated minimum of £3.8bn year-on-year in income tax, according to the National Landlords Association.

Data collected by the NLA shows that the combined taxable income for landlords in England on a yearly basis in 2018 was recorded at £19.1bn – when costs paid for regular maintenance, finance costs, and miscellaneous legal and management expenses are taken into account.

If all landlords paid the basic rate of income tax – £1,688 – this would equate to the estimated minimum of £3.8bn annually – excluding additional mandatory fees such as stamp duty land tax, capital gains tax, VAT, and the additional property levy, the NLA reports.

NLA chief executive Richard Lambert comments: “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.”

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