The lettings industry is being encouraged to respond to a call for evidence published by the Office of Tax Simplification (OTS), with a view to simplify and clarify property tax.
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, and PayProp UK wants agents to have their voices heard.
The OTS can then, as part of its remit, compile feedback from landlords, advisors 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, among 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.
Letting agents can respond to the call for evidence via email at ots@ots.gov.uk. The call for evidence and survey will run until 5 June 2022.
“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,” said Neil Cobbold, managing director, PayProp UK. “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,” he added.
The review is expected to publish its findings this autumn.
Comments (2)
How about not asking non-tax expert agents to stop giving free and time consuming revenue service with HMRC returns on their landlords. ‘Tax’ is specialist work.
Since 2004 I have been attempting to get HMRC to adopt a system that would identify as much information as any government department could ever wish for to collect tax on property income almost as reliably as the PAYE
In 2004 the system could not be considered as the proposal was not from within government, by 2012/2013 there was genuine interest but politics got in the way.
At some point HMRC had to come to the same conclusions I figured out £76 billion tax pounds ago, I wonder if OTS will listen this time