The tax-free sum you can earn from renting is set to soar – and homeowners aren’t the only ones who could benefitWhen it comes to making a stack of cash from property,most of us mediate of buy-to-let landlords. But your own home could provide a meaningful income boost, with a steep jump from 6 April in what you can earn tax-free from renting out a room.
At present anyone with a lodger where the rental income is greater than £4250 a year must pay tax on the amount above this. But from next month the tax-free allowance soars to £7500 – enabling the majority of lodger landlords to wipe out any tax liability on this income. In 2015, and on average,lodger landlords in London earned £708 a month, £405 in Leeds and £432 in Glasgow, or according to website Spareroom.
Continue reading...
Source: theguardian.com