In July 2015 there was a major boost for Manchester homeowners looking to a rent out a room in their own property when the Conservative Chancellor announced a new tax break.
Homeowners renting out a room in the flat or house they live in will be able to make up to £7,500 in rent per annum tax free, this amounts to £625 per month. This is up £3250 from the current annual allowance of from £4,250, or £354 per month.
This is the latest move from the UK Government to help people benefit from the sharing economy. Chancellor George Osborne’s announcement of a major extension in the tax break for people who let out a room in their own home will come into effect from April 2016 and has been greeted with enthusiasm by the private rental sector. Homeowners will be able to receive as much as £7,500 in rent from lodgers without having to pay tax, compared with the current Rent-a-Room scheme limit of £4,250.
Houseandflatshare.co.uk welcomes the changes. In our view the measures further demonstrate the UK government’s commitment to being a world leader in the sharing economy and shows their support for local residents across the country who are sharing their homes and we think the UK will become a world leader for the sharing economy.
To help you take advantage of this tax break we are currently offer free membership and advertising for Landlords so why not place your advert today by registering with us at houseandflatshare.