Chancellor defends tax hike on property owners
Summary
The Chancellor has defended Budget changes that increase Income Tax on rental earnings, arguing the policy protects earned income from employment while asking more from asset holders. From April, landlords will face a 2 percentage point rise in tax on property income, with higher and additional rates also increasing.
Why it matters
Changes to landlord taxation can affect rental supply, landlord behaviour and investment decisions, all of which influence the private rented sector that surveyors advise on and value against. The article also links the tax rise with wider regulatory pressure, which may affect market conditions and landlord exit risk.
Key points
- Rental income tax rates will rise by 2 percentage points from April.
- Basic rate tax on rent increases to 24%, with higher and additional rates rising to 44% and 49%.
- The Treasury says 84% of income tax payers will be unaffected.
- Industry commentary warns the measures may increase rents and encourage landlord exits.
- The tax change is being discussed alongside the Renters’ Rights Act and wider private rented sector regulation.
Organisations:
Treasury, BBC Radio 4, Boydens, The Negotiator
Regulations:
Renters’ Rights Act
Locations:
Essex, Suffolk
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