Were Labour to win at the next General Election landlords would face further tax hikes, according to a Labour MP.
Shadow Economic Secretary to the Treasury Tulip Siddiq, said a Labour Government would commit to increasing tax on unearned income such as rent.
In a speech on Friday (May 20) she said: “Unearned income [such as rent on buy-to-let property] is taxed at a much lower rate than earned income.
“This requires new thinking in terms of regulation and government tax policy. We want to make sure unearned income is taxed properly and we don’t feel that it is at the moment.”
Siddiq also said there was a growing consensus that the tax system is not working, however, she said Labour had yet to develop a full policy on reform.
“Any change we make to our tax system we [will] want to make sure is guided by fairness and anyone who has worked really hard doesn’t pay too much tax.”
Landlords have been battered by tax hikes over the past few years including a 3% Stamp Duty surcharge and reforms to mortgage relief.
Paul Barnes a landlord from Lincoln said: “Squeezing margins for landlords does little to help the housing crisis.
“What is often forgotten by politicians is that the private rental sector is one of the key elements needed to solve this crisis.
“Taxing landlords out of the market serves only to cut supply, increase rents and make homeownership more difficult to afford.
“With everything happening globally and domestically I can’t see why another tax grab on landlords would be a priority for a Government.”
