Renting a Room During the Olympics

I live in London and have been reading about how people are renting out their homes to visitors for the Olympics. It sounds quite tempting! Would I have to declare this for tax purposes?

1st June 2012

The short answer is yes. However, providing that the amount involved is less than £4,250 and you continue to live in the property whilst renting the room(s) out, you could claim Rent a Room relief.

This relief was introduced to encourage home owners to use surplus rooms and benefit by not paying tax. It is restricted to the letting of fully furnished rooms for residential purposes only and the property must be your main home.

Even though you will not pay tax if the rental income is less than the relief available, you should report the income on your tax return, and any excess above the £4,250 is taxable at your marginal rate.

 

By Jo Nockels

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