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Labour Shadow Chancellor Trumpets Higher Tax On BTL Investment When In Power

Labour Shadow Chancellor Trumpets Higher Tax On BTL Investment When In Power

Rachel Reeves, Labour’s Shadow Chancellor has announced the party’s plan to increase taxes on BTL properties and landlords’ income from tenants.When addressing the party’s plans to help solve the ever increasing long term social care ‘burden’, she blamed the Tory’s government of funding the extra costs by introducing the ‘triple whammy’ of increased income tax, council taxand National Insurance ‘hike’.
Over the weekend Reeves told listeners of BBCs Radio 4 that: “We’ve said that it's not right that the only people who are being asked to contribute to the health and social care levy are those people who go out and work every day and the people who employ them.
“If you get your income from stocks and shares and dividends or a portfolio of buy to let properties, then you pay no additional tax whatsoever in this health and social care levy.”

Opponents have stressed that PRS landlords are in fact normal professionals who like others across all sectors work hard for their income and are already paying more than sufficient tax contributions, as well as having to deal with Capital Gains Tax when selling properties.
It was also pointed out that 12 per cent of PRS landlords are what is termed as ‘blue collar workers’ and 7 per cent have retired according to the London School of Economics’ research.; however 35 per cent of UK landlords are younger couples.
The BTL tax pledge was one of five points raised by Reeves to fight the continual sharp rise in the cost of living emergency. Labour’s other points include increasing the Warm Homes Discount and reducing/scrapping VAT on energy bills.
When faced with the question whether Labour has any alternative plans on how it would raise the required £12 billion social care costs, Reeves said: “Well, there's lots of papers out there from different organisations that show you could do exactly that.
“We will set out our plans ahead of a General Election, but it's not right just to ask those people who go out to work for a living to pay higher taxes, especially at a time when the prices of everything are going up.”
Richard Merrick of PIMS, says:” Well another promise for a General Election ‘sweetener’, no doubt they won’t have considered (turned a blind eye to) the ongoing exit of landlords leaving the sector as having had enough of the continual ‘back breaking’ government legislation, EPC targets and punitive taxes.

“Rents will almost certainly increase as every market is governed by supply and demand factors, as well as the ever increasing taxing and legislation unfairly imposed on landlords which will be passed down onto tenants.”