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New analysis from financial advice firm NFU Mutual has found that landlord numbers in the UK have increased by an average of over 100,000 each year since 2011-12.
NFU Mutual discovered that over 1.9 million people received an income from property in 2015-16. The total net income form property hit a sizeable £16.2 billion in 2015-16. This is an increase of £4.1 billion over the past four years.
The annual Personal Incomes Statistics which are published by HMRC, also revealed that the total income from dividends almost doubled over the same period. This went from £42.5 billion to £83.8 billion as average incomes grew to £17,000 per investor.
Chartered financial planner at NFU Mutual, Sean McCann, commented: ‘The Chancellor will be rubbing his hands in anticipation as these huge incomes from dividends and properties give the taxman two bites at the cherry. It’s not just the income that will be taxed. The latest predictions from the Office for Budget Responsibility show Capital Gains Tax receipts will rocket from £8.8 billion this tax year to £9.9 billion in 2018-19 and £13.3 billion in five years’ time. So they clearly expect many investors to sell up and realise their gains between now and 2022-23.’
Capital gains tax are charged when assets and investments are sold or given away. Anyone selling a property that is not their primary residence will pay 18 per cent or 28 per cent, the figure dependent upon the size of the gain and on other income streams during the tax year.
Sean continued: ‘It’s likely we’ll see the number of landlords start to plateau or even fall over the next few years as property investors start to feel the pinch from a series of tax measures that have already come into force. And if more people sell their investment properties and shares, there are likely to be more tax charges to pay.’