Rent a Room Relief - Call for evidence
Rent a Room relief was first introduced in 1992 to incentivise 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 housing.
Since then the housing market has changed dramatically: there has been an overall growth in the number of people living in the private rented sector, and the emergence of peer to peer online market places and digital platforms, such as Airbnb, have made it easier to advertise capacity, putting landlords in touch with a global network of potential lodgers.
Given the pace and scale of the change in the sector, the government wants to explore whether the design of Rent a Room relief provides the right incentives for the rental market as it exists today.
HMRC have called for evidence to better understand the current use of Rent a Room relief, in an open consultation that can be found here.
Individuals who use the relief are encouraged to take part in the consultation, especially as there is an indication that HMRC may look to restrict the relief to long term lets, which could seriously impact the bed and breakfast industry of the South West.
Ben Lee MChem(Hons) ACA CTA
Ben joined Evolution ABS in November 2016 having relocated to the South West from London. Previously a director of a top 100 accountancy firm, Ben is a qualified Chartered Accountant and Chartered Tax Advisor with a mixed tax background as well as a specialism in land and property taxes.
An obsessed rugby fanatic who conveniently started supporting the Chiefs the year they won the premiership, his weekends are usually spent cycling and walking his old english sheepdog, Martha.