The UK government has today announced that hosts sharing spare rooms can continue to benefit from £7,500 tax free earnings, as part of its Rent a Room relief scheme.
The decision was made by HM Treasury following a public consultation that included evidence from more than 650 hosts. They took part in surveys, roundtable discussions and submitted written evidence to give their account on how home sharing helps boost their incomes and make ends meet.
The Rent a Room relief tax break will continue to exist alongside the government’s sharing economy tax break, that allows hosts to earn £1,000 tax free by sharing any part of their homes, including the entire place.
This is great news for UK hosts who open their homes and share the best of British hospitality with guests from around the world. We are grateful to the government for listening to the voices of UK hosts and for continuing to support our nation’s self-starters and innovators. The UK continues to be a world leader for the sharing economy and we will continue to be good partners to the government as it rolls out further guidance.
Natasha Mytton Mills, UK Policy Manager
Last year, hosts using Airbnb welcomed almost 6 million guests in the UK, acting as valuable ambassadors for their neighbourhoods, and helping to bring visitors out of the major tourist hotspots and into communities locals call home.
This activity generates new revenues for families and communities across the UK. The typical UK host earns £3,000 by sharing their home and Airbnb hosts and guests boosted the UK economy by almost £3.5 billion last year alone.