In a review of the current ‘rent a room’ relief, which allows individuals to earn up to £7,500 tax free from letting out furnished space in their main or only residence, the government now intends to introduce a ‘shared occupancy clause’ to the relief.

The new clause means hosts renting rooms via homeshare platforms such as Airbnb will need to be resident in that property, and physically present for at least some part of the letting period, rather than allowing it to be used in its entirety.

It will stop professional landlords receiving higher profits by letting out whole properties, which the government has now decided should fall under normal property income taxation.

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