The Treasury is reportedly considering a tax on landlords that will target income from rents in the upcoming autumn budget.<\/p>\n
The proposals are centred on the expansion of national insurance to include rental income, which is currently exempt from the levy, as part of a broader push to plug a potential \u00a340bn shortfall in the public finances.<\/p>\n
Labour insiders told the Times<\/a> that property income was \u201ca significant potential extra source of funds\u201d and landlords were seen as a way of targeting \u201cunearned revenue\u201d.<\/p>\n Currently, earnings from property, savings and pensions are largely exempt from national insurance. However, widening national insurance, which usually applied employee earnings at a rate of 8%, to include rental income could reportedly end up raising about \u00a32bn.<\/p>\n Earlier this month a Guardian analysis<\/a> revealed four cabinet ministers, including the chancellor, Rachel Reeves, had declared rental income from property in the MPs\u2019 register of interests. One in eight Westminster MPs declared a rental income from property in the past year, including 43 Labour MPs, 27 Conservative MPs and seven Liberal Democrat MPs.<\/p>\n Estate agents are already warning that speculation around potential property taxes in Reeves\u2019s autumn budget could dampen demand and hit the price-sensitive housing market.<\/p>\n The property website Zoopla said the speculation around property taxes \u201cmay make some buyers consider a wait-and-see strategy<\/a>. This covers those who may possibly save money on purchases under \u00a3500,000 and concern those buying over this level as well.\u201d<\/p>\n The Guardian revealed earlier this month that Reeves is considering a tax on the sale of homes over \u00a3500,000<\/a>. Officials have been examining a potential national property tax, which would replace stamp duty on owner-occupied homes. They have been studying whether, after the national tax, a local property tax could then replace council tax in the medium-term in an effort to repair battered local authority finances.<\/p>\n Reeves is also reportedly weighing up the removal of the capital gains tax exemption<\/a> on primary residences above \u00a31.5m as ways to boost income for the government.<\/p>\n The education minister Stephen Morgan told Times Radio and Sky News he was unable to comment on speculation but that he wanted the upcoming budget to be rooted in \u201cLabour values\u201d.<\/p>\n skip past newsletter promotion<\/a><\/p>\n Sign up to Business Today<\/p>\n Get set for the working day \u2013 we’ll point you to all the business news and analysis you need every morning<\/p>\n Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy<\/a>. We use Google reCaptcha to protect our website and the Google Privacy Policy<\/a> and Terms of Service<\/a> apply.<\/p>\n after newsletter promotion<\/p>\n He told Times Radio: \u201cObviously taxation policies are a matter for the chancellor of the exchequer, and she will set out more detail in the budget later this year.<\/p>\n