RENT-A-ROOM

For some years those letting out rooms in their residential home have been able to make £4,250 each year free of tax. The Chancellor has announced this will be increased to £7,500 per year from 6 April 2016.

PERSONAL ALLOWANCES FROM April 2016

Currently the Personal Allowance (the amount that can be earned before any tax is payable) stands at £10,600. It will go up to £11,000 from April 2016.

The level at which 40% higher rate tax is payable is also increasing. From April 2016 this means a person will have to be earning in excess of £43,000 before they start paying 40% tax, up from
£42,385 this year. No change was announced to the level at which 45% tax is payable, i.e. £150,000.

INHERITANCE TAX !

Change Coming?  There may be news in the Budget on Wednesday about the taxing of residential property on death.


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