UK -Article on The Times (17/9) re: cap of £1000 tax free earnings for hosts before tax kicks in

[Alex219]

Hi,

I have just seen the article on The Times and I was wondering where I could find a bit more info. Anywhere aware on what is going to happen?
The area I'm concerned about is the limit for hosts allowed to rent their whole property for 90 days maximum and/or limited to £1000 of Airbnb income, before taxes kick in.
I understand the point, specially in London, but would this apply to smaller cities? And would this apply to hosts that are only renting one room in their property as opposed to the whole property?

I do hope they are going to target sensibly (eg professional landlords) rather than look at the tax potential and target absolutely everyone 😕

[Gerry-And-Rashid0]

First it's a long way off any such legislation ever seeing the light of day. Second it would apply to complete homes where the owner is not resident. Third it goes directly against what the last budget did which was to double the amount you can earn from your home tax free by Kerri g out a room(and the chancellor referred specifically to the sharing economy). Articles like this are placed by lobbyists from other competitors such as hotels groupings, etc in an effort to stimulate debate. Once the genie is out of the bottle it's hard to put it back in - it would be a very brace or stupid political papery to try effectively ban Airbnb type arrangements (same goes for uber, ebay, Deliveroo, justpark, etc)

[Zandra0]

Alex you seem to list both a room and a whole property.

You can book the whole property for a maximum of 90 days min the year.

No such rule applies to as room in your house as far as I am aware.

You get an allowance on earnings of £7,500 in relation to income related to your room. In theory you could also add the £1000 to this making a total of £8,500 that you can earn tax free, but only in the case of the room, assuming you are resident in the property.

Your situation is somewhat complicated by the fact you also have income from the bungalow... And I'm guessing you also earn through PAYE. This means in all likelihood you will probably need to declare all income and the tax office will make the necessary calculations. You will need to speak to the tax office and my recommendation is that you are 100% open with them.

[Julia66]

@Alex219  This is the link for the Rent a Room tax relief:

https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme