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Airbnb tax changes: This could cut your profits!

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The rent a room is a scheme was put forward by the government in 1992, to help homeowners make extra money by renting a spare room to lodgers as a way to increase the amount of affordable accommodation in an area. The incentive for homeowners to rent a spare room was that earned income from this room would be tax-free up to the amount of £7,500. 

This has in more recent years been applied when renting out an entire property, a perfect example of this is people renting out their sole residents on Airbnb.
With the initial amount of £7,500 being tax-free and very desirable areas such as London and Manchester having many people taking advantage of this. The government is looking to close this tax window... But only very slightly. 

The government has now put forward plans to offer the tax relief only if part of a property is let - not the entire property, as is often the case in modern internet-booked short lets such as Airbnb


Click here to read the full story: https://www.lettingagenttoday.co.uk/breaking-news/2018/7/tax-bombshell-may-curb-airbnb-style-short-lets




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