Business tax: The private rented sector
Experts have called for a full review of the taxation of property income. The ICAEW Tax Faculty responding to a Treasury consultation on investment in the UK's private rented sector claimed that the tax system had failed to reflect or encourage the increased interest in the private rented sector as a viable business opportunity for private individuals.
'Indeed the only proposal for change [now on hold pending the outcome of the election] has been to abolish the special rules which allow furnished holiday letting income to be taxed like a trade ' the Faculty said. The CIOT noted that researchers at the University of York's Centre for Housing Studies had indicated in 2008 that 'activity as a responsible landlord involves significant input and is akin to running a trade'. The paper entitled 'The Private Rented Sector: its contribution and potential'...
