Landlords should face tax hike, policy advisers argue
Landlords could be hit by a new tax blow if Chancellor Rachel Reeves (main picture) takes up a recommendation from an influential thinktank.
The Resolution Foundation is suggesting that Reeves cut National Insurance and add 2p onto income tax when she unveils her Budget in November.
This move would affect landlords who currently pay income tax but not NI, at a time when many are already considering exiting the property market.
Strong links
The Chancellor should protect workers’ pay packets and level the playing field on how different forms of income are taxed, the Resolution Foundation says.
A 2p cut in employee National Insurance offset by a rise in Income Tax would raise £6 billion in a Budget that will require significant tax increases, according to the Foundation.
Treasury Minister Torsten Bell was CEO at the Resolution Foundation until last year, so there are strong links with the Labour Party.
Level playing field
Adam Corlett, Principal Economist at the Resolution Foundation, says the tax change “should form part of wider efforts to level the playing field on tax, such as ensuring that lawyers and landlords face the same tax rates as their clients and tenants”.
But Housing Minister Matthew Pennycook insisted Labour would stick to its manifesto pledge to not increase income tax, The Independent reports.
He told Times Radio: “We’re going to honour our commitments not to increase the rates of income tax, National Insurance or VAT on the pay packets of working people.”
And he added “the principles that will underpin this Budget are that we’re going to build an economy that works for all working people”.
Landlords to be hit with National Insurance on rental income
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Author: Gemma
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