Landlords call for Rent a Room tax threshold to be increased
News Category: Industry News
Published: 11-Nov-2009
This article was brought to you by Rentman the premium rent management software
Landlords' association the NLA has called for the tax threshold on the Rent a Room scheme to be raised.
The initiative was originally set up by the government to encourage people to rent out spare rooms, but the number of people taking advantage of the scheme has dwindled in recent years.
It is claimed by the NLA that this is due to the fact that the threshold under which rental income is exempt has been frozen at £4,250 a year since 1997/98.
More than 60 per cent of rooms in the UK and 91 per cent of rooms in London are now rented out for more than this amount.
The NLA is calling for the government to help out landlords by increasing the threshold to £9,000 a year.
David Salusbury, chairman of the organisation, said: "There is no way of telling just how many potential live-in landlords are not letting out their spare rooms because of the hassle-factor of having to complete a self-assessment tax form."
Under the rules of the scheme, a lodger can occupy up to an entire floor of a landlord's private home.
How to stay legally compliant with letting agency software
