The Court of Appeal held that where rented properties are co-owned, the landlord levy is due by any co-owner pro rated to the rented properties’ WOZ value ), whereby the co-owner in question is entitled to a tax free allowance of – to date – 10 times (at most) the average value of the rented properties.
Under the current Act, the landlord levy assessment is imposed upon one of the co-owners (for example the most senior one); which appears arbitrary to the Court of Appeal. The Court of Appeal considers this to be contrary to the principle of equal treatment and therefore champions a strategy under which each co-owner receives a landlord levy assessment, whereby the tax free allowance is determined on an individual basis.
The landlord levy is calculated on the basis of the rented properties’ WOZ value. Currently, there is an allowance for 10 rented properties. This allowance will be increased to 50 rented properties, taking effect on 1 January 2018. In effect, the levy standard will be reduced by 50 times the average rented property’s WOZ value. Owners/co-owners of 50 or fewer rented properties (each) will no longer be liable for landlord levy.
We do not know whether or not an appeal has been brought against this decision. Incidentally, there is a case pending before the Dutch Supreme Court about the landlord levy on properties that are co-owned. The Advocate General submitted his opinion on 28 December 2016 in that case.