AAT asks Government to leave the Rent a Room Relief alone
Published on Wed, 17th Jan 2018 19:16
During the last budget the Government invited comments the Rent a Room Relief, and how it could be better targeted towards long term lets.
The Association of Accounting Technicians (AAT) has responded with a public report in which they have urged the Government not make the existing scheme any more complicated, as it benefits landlords and tenants alike.
They stated “The simplicity of rent-a-room relief has made it attractive, so imposing restrictions based on the success of short-term and holiday lettings obviously risks damaging the sector.
“Restrictions will reduce accommodation availability and choice, as well as reducing the incomes of many people who find this one of the few ways they can supplement their earnings in a relatively simple and tax efficient manner.”
Then continued “It’s not clear why the Government is so concerned about people renting their spare rooms out for holiday and short-term lets, but if the costs of this relief are the main driver, then this appears to be misguided.”
“Instead of looking at individuals who just want to supplement their income by renting out a spare room for a few nights a year, Government would be better advised to direct its attention to the questionable tax arrangements of some digital platforms, with Airbnb a particularly high-profile recent case.”