To ask His Majesty's Government what assessment they have made of the impact of current tax policy for small-scale lettings.
Answered on
30 January 2024
Property income is subject to income tax. All landlords can access the property allowance, which provides a tax exemption of up to £1,000 a year for individuals with income from land or property.
The Government has nearly doubled the income tax personal allowance since 2010 (30% higher in real terms), ensuring some of the lowest earners do not pay income tax. Thanks to the personal allowance, around 30 percent of individuals do not pay tax.
As with all aspects of the tax system, the Government keeps the tax treatment of property income under review and any decisions on future changes will be taken by the Chancellor in the context of wider public finances.