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

New regulations apply from 11 June to amounts reimbursed by an employer to an employee for the purchase of equipment that is obtained for the sole purpose of enabling the employee to work from home due to coronavirus, it applies from 11 June to 5 April 2021.

During the lockdown period many employees have not been using their company cars.

HMRC have confirmed that there continues to be a benefit unless the car is unavailable for private use. Note this when form P11Ds are completed. http://cars.it

Let’s Talk

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