header curve
header curve

Changes to rent-a-room relief

Changes to Rent-a-Room Relief
10 Jul 2018
Share

Changes to Rent-a-Room Relief

A new test is to be added to the qualifying criteria for rent-a-room relief from April 2019.

The test will require that the individual or individuals in receipt of income – the home owner(s) – will need to share occupancy of the residence in question with the individual whose occupation of the furnished accommodation is generating the receipts – the lodger.

In their notes advising this change HMRC says:

Rent-a-room relief provides Income Tax relief for those letting out furnished accommodation. It was introduced in 1992 to encourage individuals to make spare capacity in their homes available for rent. The government intended this to increase the quantity and variety of low-cost rented accommodation, giving more choice to tenants and making it easier for people to move around the country for work.

Rent-a-room relief presently gives relief from Income Tax for up to £7,500 of income to individuals who let furnished accommodation in their only or main residence.

In the last 25 years the housing market has changed significantly. The private rented sector has more than doubled in size, and the emergence and growth of online platforms in particular, have made it easier than ever for those with spare accommodation to access a global network of potential occupants.

The objective of this clause is to ensure that rent-a-room relief is better targeted to achieve its objective of incentivising individuals with spare accommodation (that might otherwise go unused) to share their homes.

.

Download our Ebook

By providing your email address, MCA will send a copy of the Ebook to your email.

 
* indicates required

To see how we handle your personal data, click here.

You can also unsubscribe at any time by clicking here.

We may transfer your personal data to third parties such as Zoom/Mailchimp/Boma/YouTube and while we are not responsible for the privacy policies of other organisations, we acknowledge that we are a joint controller with those organisations regarding your personal data. Learn more about Mailchimp/Zoom/Boma/YouTube privacy practices here.

.

Request a copy of the recording!

By providing your email address MCA will email you a link to watch our latest webinar.

* indicates required

To see how we handle your personal data, click here.

You can also unsubscribe at any time by clicking here.

We may transfer your personal data to third parties such as Zoom/Mailchimp/Boma/YouTube and while we are not responsible for the privacy policies of other organisations, we acknowledge that we are a joint controller with those organisations regarding your personal data. Learn more about Mailchimp/Zoom/Boma/YouTube privacy practices here.

.

Download our Ebook!

Complete the form below to receive The 3 Freedoms Ebook.

* indicates required
Communication Preferences

To see how we handle your personal data, click here.

You can also unsubscribe at any time by clicking here.

We may transfer your personal data to third parties such as Zoom/Mailchimp/Boma/YouTube and while we are not responsible for the privacy policies of other organisations, we acknowledge that we are a joint controller with those organisations regarding your personal data. Learn more about Mailchimp/Zoom/Boma/YouTube privacy practices here.