"Expats face £400 million tax raid"

Emailed in by MBK from The Telegraph:

Expats who rent out their homes in Britain will be stripped of the right to use the personal allowance, under a tax raid prepared by George Osborne...

Under Treasury proposals released for consultation, the allowance would be restricted to people with a “strong economic connection” to Britain, bringing the tax regime into line with the US, Canada and much of the EU.

The move could affect up to 400,000 people and raise the exchequer an extra £400 million a year. It would include 175,000 people who live abroad and earn an income from property in Britain.

What's the problem?

Isn't there a traditional KLN that "Landlords will just add the tax to the rent so tenants will end up worse off?"

Go on then, let's see those 175,000 bump up their rents by a few thousand quid a year.
--------------------------------------
In any event, the whole article is complete nonsense.

Most countries levy full income tax on income arising in that country, in particular rental income. Most international tax agreements say the same and further, most countries include residents' overseas rental income in total taxable income, with a credit for any tax already paid at source (i.e. in the country where the land and buildings are).

So although some non-resident landlords might end up paying a bit more UK income tax, by and large, their tax bill in the country in which they live will come down by an equal amount.

Dinero says: "All else aside there is an irony in a proposal that those that live away from the products of taxation spending, pay more towards it."

Nope. The tax is on benefits received, i.e. land rent, itself largely the product of taxation spending. Further, the article talks about UK pensioners, who are getting proper cash money from the UK taxpayer.