Treasury ‘considers national insurance on rental income’

THE Treasury is reportedly considering a tax increase on landlords by imposing national insurance on rental income ahead of Rachel Reeves’ autumn Budget.

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Officials are said to be looking at proposals to hike a levy on property earnings in the hope of raising £2 billion as the Chancellor searches for ways to raise cash amid dire warnings about the state of the public finances.

The move is being backed by some Labour MPs and Government aides, with some proponents saying landlords were seen as a way of targeting “unearned revenue”, The Times reported.

Employee national insurance contributions (NICs) on other earnings stand at 8%, but drop to 2% above a £50,270 threshold.