Is ‘Rent a room’ tax relief serving its purpose? (UK)

06/12/2017

‘Rent a room’ relief introduced in 1992 to increase the volume and variety of low cost rented accommodation by incentivising individuals to rent out spare furnished rooms in their ‘main or only home’ is the focus of an HM Treasury call for evidence intended to explore whether it remains effective in today’s rental market.

‘Rent a room relief’ currently enables individuals to earn up to £7,500 tax free without notifying HM Revenue & Customs either of the income or that they are benefitting from the relief, unless they are already required to submit a self-assessment tax form. Individuals earning more than £7,500 qualifying for rent a room relief must complete a tax return.

With the overall growth of people living in the private rented sector and the emergence of peer-to peer online marketplaces and digital platforms to put those letting rooms in touch with a wide network of potential lodgers, the Call for Evidence seeks to help the government understand the relief’s current relevance and inform any potential reforms by

gathering information about who uses the relief, what kinds of activity they are carrying out, why they choose to let spare accommodation in their main or only residence and the effect of the relief on the marketplace
establishing whether the relief is still increasing the supply and variety of low cost housing, as the government originally intended

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

See all our latest news here!

Keep up to date with the latest news by following us on social media:-

Please call us on 0330 053 9263 to discuss how CPA can help your cashflow. Alternatively, either email us or use our contact form.

I consent to supplying my personal information that may be used for marketing purposes and agree with the privacy policy.
[recaptcha]

£25m planning delivery fund boosts new homes and infrastructure in England (E)

China Could Cause New Financial Crisis: Warn IMF

Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.

Call us today