Landlords could see tax hike under potential plans to target 'unearned income'

Landlords could be hit with a tax hike under plans being considered to target "unearned income". The Times reports that officials are contemplating proposals to apply national insurance (NI) to rental income, potentially raising £2 billion.

Currently, earnings from property, pensions and savings are largely exempt from NI contributions, which apply to other forms of income at a rate of 8%.

This could now be extended to include rental income, with Labour insiders hinting that property income was "a significant potential extra source of funds " and landlords were a means of targeting "unearned revenue".

The Treasury is weighing up options for tax increases while striving to avoid breaching the "red lines" set by Chancellor Rachel Reeves ahead of the general election not to raise VAT, inco