Sarah Bradford explores looks at rent-a-room relief and its possible application in relation to Airbnb-type lets.
Letting living accommodation on a temporary basis through sites such as Airbnb is a popular way to raise additional cash – and the availability of rent-a-room relief means that it is possible to enjoy this additional source of income tax-free in many cases.
All change…and no change!
For a while, it looked as if this tax bubble was about to burst as the government sought to introduce amendments to the rent-a-room legislation to target what they perceived as an abuse of the rules.
Following concerns that the relief was not being used for its intended purpose - namely that of boosting the supply of cheap low-cost living accommodation - a call for evidence was launched in 2017 to find out how the relief was used in practice and
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