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Airbnb new tax laws
FuffyCat
Posts: 42 Forumite
I've owned my house for around 2 years and I've been with my boyfriend for about a year. He also owns a house that I spend most of my time.
I've been thinking of making a bit of extra cash by renting my place out on AirBnB. This seems to be a smaller commitment then permanently/long term renting out my place.
My question is, what is my best action in terms of making the most of this? The new laws (April 2019?) around renting your home on AirBnB seem really complicated. If you choose to rent just a "room" in your home then you have a tax threshold of £7500 but if you rent the "entire" place then is it immediately counted as income tax (the same as long-term rent).
I read somewhere that the latter is only the case if your place is listed/available for 210 days or more and if it is actually rented for 105 days or more. What happens if you rent the entire place but don't meet these requirements?
If anyone knows anything more about this, I'd be really grateful.
I've been thinking of making a bit of extra cash by renting my place out on AirBnB. This seems to be a smaller commitment then permanently/long term renting out my place.
My question is, what is my best action in terms of making the most of this? The new laws (April 2019?) around renting your home on AirBnB seem really complicated. If you choose to rent just a "room" in your home then you have a tax threshold of £7500 but if you rent the "entire" place then is it immediately counted as income tax (the same as long-term rent).
I read somewhere that the latter is only the case if your place is listed/available for 210 days or more and if it is actually rented for 105 days or more. What happens if you rent the entire place but don't meet these requirements?
If anyone knows anything more about this, I'd be really grateful.
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Comments
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To begin with will your mortgage lender (and freeholder if applicable) even allow it? Many don't.
It could be a non-starter before you even have to begin thinking about tax.0 -
Is that the case for "rent a room"? Would I tell my mortgage provider if I wanted to rent out a room?0
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Rent a room is for lodgers
And any rent from lodgers is also classed as income. However, HMRC gives you a £7,500 allowance on top of your personal allowance so you don't pay tax on it. AirBnB doesn't qualify, even if it is just one room (as I understand the rules).Any language construct that forces such insanity in this case should be abandoned without regrets. –
Erik Aronesty, 2014
Treasure the moments that you have. Savour them for as long as you can for they will never come back again.0 -
Has the new law come in? I could only find articles on the draft such as here:
https://www.moneysavingexpert.com/news/2018/07/new-laws-set-to-close-tax-free-loophole-on-airbnb-lets/
I believe that a new regulation may have come in in Ireland though called the short term letting regulations?YNWA
Target: Mortgage free by 58.0 -
So rent from lodgers only counts if its long time rent? As soon as any "rent" comes through AirBnB they will tax. You're technically having a lodger if you rent a room on AirBnB?0
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@Niv Google "hs253-furnished-holiday-lettings-2018" I'm not allowed to post links as a new user
:( 0 -
@Niv Google "hs253-furnished-holiday-lettings-2018" I'm not allowed to post links as a new user:(
Thanks Fluffy cat.
That appears to apply for letting a whole property as opposed to a room for the night.
FreeBear - where did you get the info regarding Airbnb not qualifying under rent a room scheme?YNWA
Target: Mortgage free by 58.0 -
@Comms68 Well I still live there but spend most of my time at my boyfriends. I guess if you rent your "entire" place then you technically don't live there for the duration of your guests stay.0
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