"This is a valuable opportunity for landlords and the wider industry to help clarify and further develop tax rules"
Rental property taxation is a key concern for people considering investing in the private rented sector. However, some aspects of the different tax regimes and deductibles for the different forms of rental properties can be a challenge for landlords and micro-companies that own property – and even professional tax advisers and letting agencies.
For this reason, the OTS has put out a call for evidence, asking landlords and those that help them comply with the current tax rules, to suggest improvements and efficiencies to the current property tax regime. The OTS can then, as part of its remit, compile feedback from landlords, advisers and property professionals to put forward recommendations and advice to the Chancellor regarding how to make the UK tax system simpler for the property industry.
This expansive review will consider, amongst other things, the way that property income fits into income tax; the different rules that apply to residential lettings and other forms of lettings; income from property overseas; as well as reliefs and exemptions.
Landlords are encouraged to submit their views via the survey on the consultation page of the OTS review of property income. The call for evidence and survey will run until 5 June 2022.
Neil Cobbold, managing director of PayProp UK, said: "As a PropTech provider we are seeking to engage with government at all levels to show how technology can help enhance trust and transparency in the private rented sector. In talking to representatives from the OTS, it’s clear to us that they welcome the input of letting agents and landlords as well as third parties on making property taxation more transparent.
“This is a valuable opportunity for landlords and the wider industry to help clarify and further develop tax rules, and we would encourage any letting agent to fully contribute to the consultation.”
