Income tax threshold for landlords 'should rise'

Posted: 11 Nov 2009 11:04:32 GMT

The income tax threshold for landlords who rent out rooms in their houses to tenants should be raised, according to the National Landlords Association (NLA).

Rent from lodgers is not taxed up to £4,250 and the NLA has called for the exemption to be brought up to £9,000.

David Salusbury, chairman of the association, said that the threshold has not been increased in line with the rapid rise in rent levels over the last few years.

He also said that more people would rent out rooms in their properties if they were able to avoid completing self-assessment tax forms.

Increasing the upper tax-free limit to £9,000 would be "a win-win situation that helps both parties", Mr Salusbury explained. "It is about time the exemption reflected the increase in market rents," he added.

Recent research by Paragon Group found that one-third of landlords in the UK are expecting tenant demand to grow in the coming 12 months.


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