THE TREASURY is considering extending national insurance to rental income in the autumn budget, a move that could raise about £2bn.
Currently, rental income is exempt from national insurance, which is charged at 8 per cent on employee earnings.
Labour insiders told The Times that property income was “a significant potential extra source of funds” and landlords were seen as a way of targeting “unearned revenue”.
A Guardian analysis earlier this month found that four cabinet ministers, including the chancellor Rachel Reeves, had declared rental income in the MPs’ register of interests.
One in eight MPs reported rental income in the past year, including 43 Labour MPs, 27 Conservatives and seven Liberal Democrats.
Estate agents have warned that speculation on property taxes in Reeves’s budget could dampen demand in the housing market. Zoopla said it “may make some buyers consider a wait-and-see strategy”.
The Guardian also reported that Reeves is weighing a tax on home sales over £500,000, replacing stamp duty with a national property tax, and possibly replacing council tax in the future. She is also considering removing the capital gains tax exemption for primary residences above £1.5m.
Education minister Stephen Morgan said on Times Radio and Sky News that it was not for him to comment on speculation.
A Treasury spokesperson said the government’s focus was on growing the economy while keeping taxes for working people low.
