Our First Airbnb, Taxes property Definitions.

Matthew1635
Level 1
Canterbury, United Kingdom

Our First Airbnb, Taxes property Definitions.

Hi all, 

Me and my partner are in the process of buying a new house which we are looking at renting out a part of it.

The proerty is spread over 3 floors and is being sold as a 5 bedroom house on the deeds for the 3 storey house on 1 plot of land. The whole proerty has only 1 address, 1 set of meters (with a sub electric meter serving the ground floor).

However the ground floor of the house does not share any indoor access to the main house on the first and second floors. But unlike a garage conversion or extension, is required to be there to prop up the house above. This we intend to rent out via Airbnb or the like.

Apprently has 2 council tax bills (but ive been informed they were merged previously) as the ground floor was rented out privalty  long term, despite having a very dodgy sink / electric situation that we will rectify!

We will be living full time in the first and second floor and using the driveway outside the proerty. 

My question are.

Do you think it could qualify of the UK rent a Room Scheme, I cannot find a definte definition of main residence, but the place only has 1 address and we would be living at it full time. But the flat would not share any kitchen or bathrooms with the first and second floors, but would share the garden space.

If it doent qualify for the scheme, where the building is 1 address , do you think we can airbnb with 1 council tax bill rather than two? As it wont be a perminant resident? 

Many thanks in advance

Matt 

#hosting #tax #bills

1 Reply 1
Mike-And-Jane0
Level 10
England, United Kingdom

@Matthew1635 the rent a room scheme is very clear in that it requires access between the rented rooms and the house.

If you short term rental the downstairs and the council find out then you will need to get it rated for business rates (which would likely be zero per year) BUT you will be liable for capital gains tax on this part of the property when you sell.