NLA call for increase in the ‘Rent-a-Room’ scheme threshold

The National Landlords Association is calling for the ‘Rent-a-Room’ scheme threshold to be increased.

Rental income up to a threshold of £4,250 from lodgers renting a room in a landlords house is exempt from income tax.

The threshold has remained static since the scheme was set up back in1997 even though rents have double over the period, reducing the relative benefit and therefore the incentive to using the scheme.

The NLA is supporting the ‘Raise the Roof’ Campaign which is lobbying for a tax-free threshold increase to £9,000 per year.

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