• Skip to primary navigation
  • Skip to main content
  • Skip to footer

Top notice bar

Call us on 08000 388799

Avanti Tax Accountants HomepageAvanti Tax Accountants

Bookkeeping, Accountancy and Taxation services

  • Home
  • About Us
  • Our Services
    • Bookkeeping & Accountancy
    • Corporation & Personal Tax
    • Payroll & CIS
    • Company Secretarial Bureau
    • Budgeting, Forecasting & Business Valuations
    • Mentoring & Business Coaching
    • Software & Training
  • Our Accountants
  • News & Insights
  • Send An Enquiry
Home » News & Insights » Shared Occupancy Testing

Shared Occupancy Testing

Posted on 19th December 2018

Following consultation on draft legislation and feedback highlighting the unnecessary complexity of changing the rules, legislation on a ‘shared occupancy test’ has been removed from Finance Bill 2018-19.

The government will retain the existing qualifying test of letting in a main or only residence and will work with stakeholders to ensure that the rules around the relief are clearly understood to stop abuse of the system.

The proposals, announced in the summer by the Treasury, set out a new shared occupancy test for those renting their spare rooms to continue to qualify for the annual £7,500 rent-a-room tax relief.

This would have brought an end to rent-a-room relief for those who rented out a single room while they were absent or from renting out entire properties while away from home. This would have hit sporting events, where for example people rent out their properties during the Wimbledon fortnight or British Open.

The Association of Accounting Technicians (AAT) campaigned against the change which they said added unnecessary complexity to the tax system, had a negligible impact on tax receipts, would draw thousands of people into the tax self-assessment system and would be a ‘nightmare’ to enforce.

Phil Hall, AAT head of public affairs & public policy, said: ‘AAT is delighted that HM Treasury has seen sense on this and recognised that the best solution for landlords, tenants, policymakers and the economy was to drop these plans and allow rent-a-room relief to continue as it has for over 25 years as a simple to administer, easy to understand tax relief that is available to all.’[1]

[1] Reproduced from the AAT

Share this post:

Share on TwitterShare on FacebookShare on LinkedInShare on E-mail

Filed Under: Exclusive News

Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice

Footer

Navigate

  • Find An Accountant
  • About Us
  • News & Insights
  • Privacy Policy
  • Letter Of Engagement

Our Services

  • Software & Training
  • Mentoring & Business Coaching
  • Budgeting, Forecasting & Business Valuations
  • Company Secretarial Bureau
  • Payroll & CIS
  • Corporation & Personal Tax
  • Bookkeeping & Accountancy

Get In Touch

Tel: 08000 388799
Send us an enquiry

  • Facebook
  • Instagram
  • Twitter
Copyright © 2023 Avanti Tax Accountants · All Rights Reserved
Part of The Maurice J Bushell & Co Ltd Franchise (UK) Ltd · Company Reg: 10407313 and The Avanti Group (UK) Ltd · Company Reg: 04635630 · Created by Purple Hippo
  • So we can contact you to discuss your enquiry
  • So a member of our team from your area can contact you
  • By clicking ‘Send Enquiry’ you agree to receive contact from Avanti Tax Accountants using the details given above. We respect your personal information and your privacy and will not share or sell your information to other organisations. Please read our Privacy Policy for more information.
  • This field is for validation purposes and should be left unchanged.