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New research has found the estimated total income tax contribution by private landlords in England exceeds £3.8bn annually. 

The study, conducted by the National Landlords Association (NLA) highlighted this was more than double Tesco’s entire annual tax bill

According to the research, 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 alone or £1,668 per landlord.

And this is 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 says:

“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 have 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.”