Blog

News and advice to help make your business a success

LANDLORDS FINANCIAL BLOG

All

Landlords Tax Property Tax Landlords Tax Returns Property Accounts Property Tax Return Landlords Accounts Chartered Accountants Online Accountant Online Bookkeeping Online Tax Returns Tax Returns Your Online Accountant Your Online Bookkeeper Property Accountant Accounting Furnished Holiday Lettings Inheritance Tax Property bookkeeper Tax Capital Allowances Capital gains tax property Cashflow Employment Allowance Finance Holiday Lets Tax Landlords Accountant Landlords Financial Making Tax Digital Mileage Allowance Pension Property Company Tax Property Tax Deductible Expenses Rent a Room Relief Smallbusiness VAT VAT invoice 60 day capital gains limit AirBnB Allowable Business Expenses Annual Exempt Amount Annual Tax on Enveloped Dwellings Assessment Associated Company Associated Company Tax Rules Bad Debt Bad Debt Tax Relief Beancounter Benefits in Kind Breakeven Point Budget Business advice Business Entertainment Business Expenses Business Rate Business Rates Relief Business tips Businessadvice Businesstips Buy or Lease Equipment Capital Allowances for Cars Car Capital Allowances Carry Back Losses Change of Tax Basis CIS Scheme Common Tenant Companies Expenditure Companies House Company Account Deadlines Company Account Filing Company Strike Off Company Tax Efficient Property Compliance Compulsory Strike Off Construction Industry Scheme Corporation Tax Losses Corporation Tax New Regime Corporation Tax Rates Costs Cryptocurrency Deductible Business Expenses Directors Loans Disallowable Business Expenses Discovery Disincorporation Dividend allowance Dividend Allowance Reduction Dividend Planning Dividends Domestic Items Tax Relief Employee Discount Enquiry Equity Expenses Expenses Allowed For Tax Furnished Holiday Lets Tax Gift Aid Growthhacks Help to pay tax bills HMO Licensing Fees Holiday Lettings Tax How to apply for a Business Loan How to Extract Profit Inheritance Tax Nil Rate Band Investment Property Tax Joint Tenant Landlord Repairs Landlords Self Assessment LBTT Letting Agent Disbursements Letting Agent Recharres Lettings Relief Long Lets Tax LTT MakingTaxDigital Managed Lets Management accounting Minimumwage Mortgage costs Mortgage Interest Relief NIC 2023 to 2024 Overpayment Relief Partnership PAYE PAYE by Direct Debit Pension Payments Tax Relief Personal finance Personalguarantees Profit Property Property Allowance Property Development Company Property Incorporation Property Investment Company Property investor accounts Property investor tax tips Property Letting Property Rental Business Property Trading Recharges by Estate Agents Rent your drive Research & Devolopment Residence Relief Residential property gains Room for rent tax Salary SDLT SDLT changes Section 455 Tax Selective Licences Landlords Self Assessment Simplified Expenses Small Business Smallbiz Software Spring Budget Stamp duty Tax Allowance on Driveways Tax Allowances Tax Deadlines Tax Filing Deadlines Tax Free Childcare Tax on Company Vans Tax Relief Tax tips for landlords Taxconsequences Taxplanning Taxposition Taxreliefs Transfer Assets Transfer Assets Between Spouses VAT Bad Debt Relief VAT Deadlines VAT Disbursements VAT Penalties

TAGS

Rent a Room Relief

July 19, 2018

If you rent a room out in your only or main residence, you can claim upto £7,500 per year tax free income, known as Rent a Room Relief.

A new "shared occupancy clause" is to be introduced which specifies that the owner be resident in the property, and physically present, for at least some part of the letting period. This new clause should ensure that the relief is returned to it's original purpose. This was to incentivise the letting of spare rooms and to ease the housing crisis.

This change in the rules is designed to prevent property owners from getting tax free rentals on what is essentially a bed and breakfast or holiday let business eg. AirBNB. Many property owners have been renting their homes out to holidaymakers, whilst they move out, and then claiming Rent a Room Tax Relief.

HMRC gives a couple of examples on how they expect the new rules to work.

Firstly a Landlord lets their home to a student for a specific period of time. The Landlord is occupying the house, along with the student, but then takes a holiday for a week. This income qualifies for the tax free allowance as there is a shared occupancy for part of the rental period.

Secondly a Landlord rents out their home, and moves out, say for example during a major golf tournament being held near to their home. As there is no shared occupancy the rent received is fully taxable and would not qualify for Rent a Room Relief.

Rent a Room Relief

AirBnB