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Landlords: Taxation

Question for HM Treasury

UIN HL3797, tabled on 5 December 2016

To ask Her Majesty’s Government whether they intend to take steps to ensure that limited companies are not better placed than other landlords in relation to the taxation of profits engendered by letting residential properties.

Answered on

19 December 2016

Using actual self-assessment data, HM Revenue and Customs estimate that only 1 in 5 landlords will pay more tax as a result of this measure. Given that only a small proportion of the housing market is affected by these changes, the Government does not expect them to have a large impact on rent levels.

Incorporated businesses will continue to receive relief at the corporate tax rate. However, the rate of relief (currently 20%) is not more generous than the rate of income tax relief once these changes are fully in place by 2020-21.

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