Tax status of Landlords

James made this Freedom of Information request to HM Revenue and Customs

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The request was partially successful.

Dear HM Revenue and Customs,

I am looking for information about taxes paid by landlords.

I would like to know for the tax year 2014-15:

How many individuals are declaring income from residential property letting.

How many registered self-employed landlords there are i.e. those paying class 2/4 national insurance on their letting business.

Yours faithfully,
James Harvey

HM Revenue and Customs

Thank you for your communication of 29th December 2015, please note that this is being dealt with under the Freedom of Information Act, our reference FOI 3496/15 and the response will be with you in due course.

HMRC
Freedom of Information Team

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HM Revenue and Customs

FOI 3496/15

 

Dear Mr Harvey,

 

I refer to your request, which was received on 29 December 2015, for the
following information:

 

“I am looking for information about taxes paid by landlords.

 

I would like to know for the tax year 2014-15:

 

How many individuals are declaring income from residential property
letting.

 

How many registered self-employed landlords there are i.e. those paying
class 2/4 national insurance on their letting business”.

 

I am answering under the terms of the Freedom of Information Act 2000
(FOIA).

 

Following a search of our paper and electronic records, I have established
that all of the information you have requested under FOIA is not held.  

 

Outside of FOIA

 

In order to be helpful, and outside of FOIA, I can advise the following:

 

The data from individuals’ Self Assessment forms for the tax year 2014-15
is far from complete as the filing deadline does not close until the end
of January 2016. Furthermore, Self Assessment forms relating to UK
Property do not differentiate residential property income from commercial
property income. Consequently, we can only provide you with the number of
individuals declaring property income from residential and/or commercial
property for the tax year 2013-14.

 

For the tax year 2013-14, 2,258,000 individuals declared income from
property letting. This was calculated by counting the number of
individuals who filled box 20 in the SA105 pages of the property return,
as well as the number of individuals who filled box 6.1 in the SA200 short
return and stems from data collected in November 2015.

 

The information to answer your second question is not held by HMRC.
Self-employed landlords submit Self Assessment forms for sole traders
(Self-employment Tax Return SA103 or Short Tax Return SA200) or
partnerships (Partnership Tax Return SA800). However, SA103 and SA800 do
not differentiate the different types of incomes so it is not possible for
HMRC to know when this income comes from rent.

 

In response to Class 2 and 4 National Insurance Contributions, these are
not generally charged on rental income from property with the exception of
the following two instances:

1)    The landlord is running a trade which would mean that they would
declare the profits as trading profits. As explained above, this is
declared through the Self Assessment forms SA103, SA200 or SA800 from
which HMRC cannot deduce whether it is income from letting property.

2)    The level of rental activities carried out amounts to running a
business for National Insurance purposes. It can be expected to be rare
that landlords would be registered for Class 2 National Insurance
Contributions as a result of their property rental activity.

 

Therefore, the information requested cannot be provided.

 

If you are not happy with this reply you may request a review by writing
to HMRC FOI Team, Room 1C/23, 100 Parliament Street London SWIA 2BQ or
email [1][email address]. You must request a review within 2
months of the date of this letter. It would assist our review if you set
out which aspects of the reply concern you and why you are dissatisfied.

 

If you are not content with the outcome of an internal review, you may
apply directly to the Information Commissioner for a decision. The
Information Commissioner will not usually consider a case unless you have
exhausted the internal review procedure provided by HMRC. He can be
contacted at The Information Commissioner’s Office, Wycliffe House, Water
Lane, Wilmslow, Cheshire SK9 5AF.

Please remember to quote the reference number above in any future
communications.

 

 

Yours sincerely

 

 

HMRC

Freedom of Information Team

 

 

 

The information in this e-mail and any attachments is confidential and may
be subject to legal professional privilege. Unless you are the intended
recipient or his/her representative you are not authorised to, and must
not, read, copy, distribute, use or retain this message or any part of it.
If you are not the intended recipient, please notify the sender
immediately.

 

HM Revenue & Customs computer systems will be monitored and communications
carried on them recorded, to secure the effective operation of the system
and for lawful purposes.

 

The Commissioners for HM Revenue and Customs are not liable for any
personal views of the sender.

 

This e-mail may have been intercepted and its information altered.

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