New Forest

15/05/2019

Rent a Room Relief to continue for Airbnb Landlords

Last year HMRC carried out a review of rent a room relief and it was proposed that the availability of this generous relief would be restricted to situations where the taxpayer was resident for at least part of the time when the “lodger” was paying rent. The scheme currently exempts from tax gross rents up to £7,500 where rooms within the taxpayers’ main residence are rented out.

HMRC were concerned that the relief was being “abused” by letting out the entire property using websites such as Airbnb and living elsewhere temporarily whilst the tenants were in the property. An example would be renting out a house in south London during Wimbledon fortnight and potentially receiving up to £7,500 tax free.

Note that the Autumn Budget announced that the proposed restriction was not now being introduced.

For further information on Rent a Room Relief, please contact Matt Magee on 023 8046 1207.

Latest Tweets

Class 2 NICs are currently paid by self employed earners, however certain business property owners are also liable to pay contributions http://ow.ly/bw0750BF6hS

For children born from September 2020 the Government provided vouchers for a tax free account, which can be accessed once they reach the age of 18! More information is available here http://ow.ly/BkbV50BjQqt

Let’s Talk

Why not arrange a FREE consultation and find out what we can do for your business.