Archive Article: 2001/11/02

2 November 2001

Letting rooms can earn tax-free cash

As cash flow slows to a trickle on many farms, theres little, if any, to spare for investment. But there are a number of ways to organise your personal finances to ease the burden or bring some security for the future.

One is to let a room in the farmhouse. You may not thrill at the prospect, but you can earn up to £4250 of rent a year before paying tax. Also children and other non-taxpayers can invest up to £3600/yr in personal pension contributions and get basic rate tax back, even if they dont pay tax.

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