Renters in Scotland could face an average monthly rent hike of £40 if ministers fail to rule out a “tenant tax”, Scotland’s landlords have warned.
The Scottish Association of Landlords (SAL) has urged the Scottish Government not to pass on the Chancellor’s 4% surcharge on rental income from the recent UK Budget, warning that costs will inevitably be passed on to tenants.
The Chancellor announced that basic-rate taxpayers will pay 24% tax on property income, while higher- and top-rate taxpayers will see their rates rise to 44% and 49% respectively.
Ahead of its annual Scottish Letting Day conference in Edinburgh, SAL has calculated that as many as 710,094 people in Scotland risk being impacted by the tenant tax if ministers do not rule it out in the Scottish Budget.
Scottish Letting Day takes place on Wednesday 4 November at Scottish Gas Murrayfield, with over 600 delegates attending.
The conference is the largest of its type in Scotland, with delegates involved in managing almost 50,000 properties.
SAL chief executive John Blackwood says: “Scottish ministers have an important decision to make. Either they can pass on this damaging and unfair tax, which will be felt by tenants, or they can choose not to and give everyone living in Scotland’s private rented sector room to breathe.
“At a time when landlords are leaving the sector and household and business costs are rising, it would be a foolish decision to impose this tenant tax on Scotland’s renters and would do nothing to restore confidence in our sector.
“SAL is committed to working closely with ministers and our tenant customers to alleviate pressures, stimulate growth and competition, and ultimately ensure that everyone in Scotland has a home that suits them.”
This article is taken from Landlord Today