What landlords are getting from the government
What was claimed
Buy to let landlords get £6bn in subsidies from the government.
Our verdict
It’s not clear where this figure is from. In any case, the rules on tax relief for landlords have recently changed, so the amount claimed by landlords is likely to change too.
“£6 billion a year is given to buy to let landlords”
Jonathan Bartley, 18 May 2017
The Greens haven’t given us a source for their £6bn figure, but it may be about the tax relief that landlords can claim on their rental income.
Individual landlords don’t have to pay tax on all of the income they get from rent. There are allowances for the cost of running the property - just as self-employed people get tax relief for the cost of running their business.
As much as £14 billion was reportedly claimed in tax relief by landlords in 2012/13, according to a Freedom of Information request to HMRC. About £6 billion of this was relief on ‘financial costs’, including mortgage interest.
But those figures are unlikely to be the same today, because there have been changes to the system in recent years.
Join 74,000 newsletter subscribers who trust us to check the facts
Sign up to get weekly updates on politics, immigration, health and more.
Subscribe to weekly email newsletters from Full Fact for updates on politics, immigration, health and more. Our fact checks are free to read but not to produce, so you will also get occasional emails about fundraising and other ways you can help. You can unsubscribe at any time. For more information about how we use your data see our Privacy Policy.
In the Summer Budget 2015, the Chancellor announced a series of reforms to landlord tax relief which are now being implemented.
Landlords used to be able to deduct 10% of their rental income from the profit they had to pay tax on, as a ‘wear and tear allowance’. This was abolished in April 2016, although they can still deduct the actual cost of replacing furnishings. And since April 2017, the amount that can be claimed as finance relief (e.g. on mortgage interest) has started to be restricted.
Was this helpful?
Full Fact fights for good, reliable information in the media, online, and in politics.