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Written question asked by Martyn Day (Scottish National Party) on Thursday, 30 March 2017, in the House of Commons. It was due for an answer on Tuesday, 18 April 2017. It was answered by Jane Ellison (Conservative) on Monday, 24 April 2017 on behalf of the Treasury.

Rented Housing: Scotland

Question

To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of taxing landlords on their income rather than profit on the supply of affordable rented accommodation in Scotland.

Answer

The restriction of finance costs tax relief for landlords does not mean that landlords will be taxed on their income. Landlords will still be able to deduct other costs incurred in letting out a property when calculating their taxable profits, and will receive tax relief on their finance costs at the basic rate of tax.

Only 1 in 5 landlords are expected to pay more tax as a result of this change. Given the small proportion of the housing market affected by this, the Government does not expect a significant impact on rent levels or the supply of rented accommodation. The Office for Budget Responsibility also expect the impact on the housing market will be small.

Landlords do not provide the location of their let properties on their tax return.

Secondary information

Type
Written question
Reference
69991
Session
2016-17
Related items
Taxation: Landlords
Monday, 24 April 2017
Written questions
House of Commons
Subjects
Landlords Scotland Taxation Rented housing
Link
View this Written question on www.parliament.uk