Press release: Rent-a-room relief retained for shared occupation

Draft Finance Bill 2018-19 legislation published today proposes that rent-a-room relief1 stay in place but, from 6 April 2019, it will be available only where the landlord is in occupation for some or all of the time that they are letting their home.  This means that when a family goes on holiday and lets their whole house in their absence, any income will no longer be eligible for rent-a-room relief.  However, the far more common use of the relief by those letting spare rooms to lodgers or short-term holiday guests will not be affected.

This announcement follows a call for evidence earlier this year by the Treasury. The ATT responded to the call2 based on the results of a joint survey of both ATT and Chartered Institute of Taxation (CIOT) members which received almost 700 responses. Members responses to this concern were split, with 52.6% of respondents agreeing that the relief should remain available for holiday letting, and 47.4% feeling it should be restricted to residential lets only.

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