Creating New Trust: Labour Considers Far-Reaching Tax Plans for Landlords

Experts warn of potential tax reforms planned by Labour for landlords in the UK. Measures being discussed include the imposition of National Insurance on rental income or even the introduction of a specific property tax for landlords. The apparent goal is to generate additional revenue for the treasury. Labour finance expert Rachel Reeves could implement such steps to narrow the gap between earned income and passive income. Ian Cook from Quilter argues that this is a logical consequence, as workers also pay National Insurance on their income. However, this could further discourage landlords from investing in real estate. Another proposal is to increase stamp duty for landlords, a measure that would be easy to implement and could generate significant additional tax revenue. Currently, buyers of second homes must pay a surcharge of 3% on the regular stamp duty. Airbnb hosts could also come under the scrutiny of tax measures. Currently, the rental of residential properties is exempt from VAT, but holiday accommodations are subject to the standard VAT rate of 20%. Experts like Tim Stovold from Moore Kingston Smith see potential here for additional tax revenue through stricter controls. If these plans are implemented, they could have significant impacts on the UK real estate market.