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Private Rented Housing: Income Tax

Question for Treasury

UIN HL2005, tabled on 14 July 2021

To ask Her Majesty's Government how many people declaring an income from letting property pay the (1) additional, (2) higher, and (3) standard, rates of income tax for the most recent period for which the data is available.

Answered on

27 July 2021

In 2019/20, the numbers of individuals declaring income via Self-Assessment from letting property and falling into each of the (1) additional, (2) higher, and (3) standard income tax bands that the question refers to, rounded to the nearest thousand, are:

Marginal tax rate

Number of individuals

Additional higher rate (45%)

106,000

Higher rate (40%)

560,000

Basic rate (20%)

1,519,000

It should also be noted that:

- Taxpayers in Scotland will not pay the tax rates referred to in the question as they are subject to a separate income tax regime, and are therefore excluded from the figures above.

- Not all individuals with property income are required to declare it. For example, those with income below the £1,000 property allowance are not required to tell HMRC.

- Some individuals with property income between £1,000 to £2,500 will declare this via PAYE rather than Self-Assessment. These individuals are not included here.

- Some individuals will not fall into any of the tax bands referred to in the question as their income will be within their personal allowance.

During the pandemic, the Government has put in place a substantial financial package, backed up by billions of pounds, which is supporting renters to sustain tenancies and to afford their housing costs. The Government is supporting landlords by providing tenants with extensive financial assistance to continue paying rent.  The Government will also be bringing in a Better Deal for Renters designed to help the rental market work better for both tenants and landlords; a White Paper detailing this reform package will be brought forward in due course.

Answered by

Treasury