Taxation: Rental Income

Lord Anderson of Swansea Excerpts

Tuesday 3rd December 2013 Lords Chamber

[Lord Newby]

My Lords, I am sure that the whole House knows that the Liberal Democrats are in favour of a mansion tax. I remind the House that, in the recent Budget, the Government introduced an annual tax on high-value dwellings—so-called enveloped dwellings —owned by companies, which will generate from £15,000 a year for properties worth between £2 million and £5 million to £140,000 a year for properties worth more than £20 million.

[Lord Anderson of Swansea (Lab)]

My Lords, what advice is given to our local authorities to ensure that, when housing benefit is paid, the recipient landlord pays UK income tax?

[Lord Newby]

I do not know the strict answer to that question, but HMRC makes strong efforts to bring home to everybody who should be paying tax that they should be doing that, which is why the Government have put in almost an extra £1 billion a year towards tackling tax avoidance and evasion.