Budget 2018 – Rent-A-Room Relief
Rent-a-room relief gives relief from income tax for up to £7,500 of income to individuals who let furnished accommodation in their only or main residence. The government will retain the existing qualifying test of letting in a main or only residence.
Chartered Tax Adviser, Liz Fisher said “Rent-a-room relief was introduced 26 years ago to encourage individuals to make spare capacity in their homes available for rent rather than letting out their entire property.
The emergence and growth of online platforms have made it easier than ever for those with accommodation to access a global network of potential occupants.
The government wants rent-a-room relief to be better targeted to achieve its objective of incentivising individuals to share their homes”.
If you wish to discuss your personal tax situation, please contact one of our Chartered Tax Advisers.