When it comes to making a stack of cash from property, most of us think of buy-to-let landlords. But your own home could provide a significant 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 £4,250 a year must pay tax on the amount above this. But from next month the tax-free allowance soars to £7,500 – enabling the majority of lodger landlords to wipe out any tax liability on this income. In 2015, on average, lodger landlords in London earned £708 a month, £405 in Leeds and £432 in Glasgow, according to website Spareroom.
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