Treasury clarifies “rent-a-room” relief

Changes to tax rules for short-term lettings will mean that, from April 2019, the annual £7,500 tax break property owners enjoy when renting a room to a lodger, or their whole home for short stays, will be dependent on the owner being present for at least some of the guest’s stay. Homeowners will not be eligible for the tax break if they let out their whole home; instead a new £1,000 trading and property allowance will apply to earnings from the whole property. The changes will see higher taxes for people who use Airbnb and other short-term lettings websites to let out their properties when they are on holiday.

The Daily Telegraph, Business, Page: 29 The Times, Page: 17

Posted 07/07/2018