Press release: ATT welcomes axing of rent-a-room proposals
The Association of Taxation Technicians (ATT) has welcomed the Treasury’s announcement that changes to rent-a-room relief have been shelved.
The draft Finance Bill 2018-19 published in the summer included proposals to introduce an additional test for rent-a-room relief which would have required the landlord to be in occupation for some or all of the time that they were letting their home – the so called ‘shared occupancy’ test. Following today’s Budget, they have been shelved.
Jon Stride, Co-Chair of the ATT’s Technical Steering Group, said:
“We welcome the announcement that the new shared occupancy test has been dropped.
“Rent-a-room relief is a popular and valued incentive for people with spare rooms in their homes to take in a lodger. In our response to the original consultation we noted that there was no clear consensus in the tax profession to suggest that reform was needed.
“Following the proposal to introduce a shared occupancy test, we raised concerns about the practical aspects of the new test, including what sort of evidence landlords would need to retain to prove that they had stayed in their own home overnight at the same time as the tenant.
“We also welcome the announcement that the Government will be working with stakeholders to ensure that the rent-a-room relief rules are clearly understood. We have previously called for improved guidance in this area and we look forward to working with HMRC to ensure that individuals clearly understand how the relief operates.”
Notes for editors
- The confirmation that the plans have been shelved can be found on paragraph 3.10, page 42 of the ‘Red Book’.