- Private Wealth
- Tax & Estate Planning
- Trusts
Shorter Reads
1 minute read
Published 8 October 2018
Senior Associate
The Financial Times reports this morning that HMRC are enquiring into the tax affairs of Airbnb. Of particular interest to HMRC may be the low profits as against high revenues, something which was criticised last year by Bruno Le Maire, the French Finance Minister.
The investigation serves as a timely reminder to those that use the service to rent their rooms or entire homes in the UK, to ensure they are declaring the income generated and paying the appropriate tax.
Rent-a-room relief is set at £7,500 per year so those earning under this amount (or half if the income is shared with another person) on Airbnb do not need to file a return. Landlords who do not live in the home they rent out do not qualify for the relief.
For those that are unable to claim the relief, or that earn over the threshold, a tax return must be filed.
Some may wish to consider whether their tax liability is lower by claiming the relief, or by being able to deduct expenses in the usual manner, something which is not available under the rent-a-room scheme.
As the popularity of Airbnb rises, HMRC may continue to take an interest in the tax revenue taken and therefore ensuring compliance with the rules will only become increasingly important for users of the service.
https://www.thetimes.co.uk/article/cohabiting-sisters-demand-inheritance-tax-exemption-mvs5v680b
The Financial Times reports this morning that HMRC are enquiring into the tax affairs of Airbnb. Of particular interest to HMRC may be the low profits as against high revenues, something which was criticised last year by Bruno Le Maire, the French Finance Minister.
The investigation serves as a timely reminder to those that use the service to rent their rooms or entire homes in the UK, to ensure they are declaring the income generated and paying the appropriate tax.
Rent-a-room relief is set at £7,500 per year so those earning under this amount (or half if the income is shared with another person) on Airbnb do not need to file a return. Landlords who do not live in the home they rent out do not qualify for the relief.
For those that are unable to claim the relief, or that earn over the threshold, a tax return must be filed.
Some may wish to consider whether their tax liability is lower by claiming the relief, or by being able to deduct expenses in the usual manner, something which is not available under the rent-a-room scheme.
As the popularity of Airbnb rises, HMRC may continue to take an interest in the tax revenue taken and therefore ensuring compliance with the rules will only become increasingly important for users of the service.
https://www.thetimes.co.uk/article/cohabiting-sisters-demand-inheritance-tax-exemption-mvs5v680b
Need some more information? Make an enquiry below.
Subscribe
Please add your details and your areas of interest below
Article contributor
Senior Associate
Specialising in International trusts, tax & estate planning, Private wealth, UK trusts, tax & estate planning and US/UK Tax & estate planning
Enjoy reading our articles? why not subscribe to notifications so you’ll never miss one?
Subscribe to our articlesPlease note that Collyer Bristow provides this service during office hours for general information and enquiries only and that no legal or other professional advice will be provided over the WhatsApp platform. Please also note that if you choose to use this platform your personal data is likely to be processed outside the UK and EEA, including in the US. Appropriate legal or other professional opinion should be taken before taking or omitting to take any action in respect of any specific problem. Collyer Bristow LLP accepts no liability for any loss or damage which may arise from reliance on information provided. All information will be deleted immediately upon completion of a conversation.
CloseReal Estate & Construction team joins Collyer Bristow from Ince & Co
© 2023 Collyer Bristow LLP
© 2023 Collyer Bristow LLP
Sharon Fryer, Head of Commercial Services
CB Comply: Data protection training
Collyer Bristow offers live, interactive, engaging and practical training sessions on a variety of privacy-related topics.
CB Checkpoint: Optimising your key business documentation, policies & procedures.
There are a number of key policies, procedures and documents your business should keep up to date, to be both legally protected and in preparation for investment or exit.
Collyer Bristow’s ‘CB Checkpoint’ team will give your business a full check-over, reviewing your key documentation and advising on any changes that are suggested or required. We will deliver a full report of our findings and offer support, should you need it, to ensure legal protection for your business, its assets, and ultimately its reputation.
CB Comply: Data protection training
Collyer Bristow’s Data Privacy team offers live, interactive, engaging and practical training sessions on a variety of privacy-related topics.
Robin Henry, Head of Dispute Resolution
Navigating your Business through conflict.
We work with clients across a vast range of industries supporting them through the full range of disputes. We provide dynamic and tailored strategies to get them back on track and focused on the day-to-day activities required for success.
Peter Daniel, Head of Private Wealth
Support for the day to day, support for the complex.
Tailored support for wealth individuals and families.
CB Clarity: Pre and post nuptial agreement services
The purpose of a nuptial agreement is to agree a fair financial settlement between a couple in the event they get divorced/the civil partnership is dissolved, and it seeks to protect any pre- acquired assets such as inheritance, businesses or property and also seeks to deal with any future inheritance. Put simply, pre and post- nuptial agreements help to provide security, clarity and certainty in the future, for both parties.
CB Entrust: The personalised will writing service from Collyer Bristow
CB Entrust is not an off the shelf will such as those available on the high street, but a fixed price expert approach to writing one of the most significant documents of your life.
Michael Grace, Head of Real Estate
Support across all your real estate requirements.
We work with property owners, investors, developers, funders and both landlords and tenants on the financing, growth, management and disposal of their property and portfolios.
Helping those in the financial sector respond rapidly to market changes.
Our multi-disciplinary team provides a seamless service to businesses and individuals operating in the financial sector. Our work ranges from corporate finance, lending, and restructuring, to funding, regulation, high-value banking litigation and complex claims against financial institutions.
lifetime gifting
A lifetime gift is any gift that you make, without strings, during your lifetime.
In the UK, there are strict rules around gifting to stop people from avoiding IHT by giving away their possessions as gifts before they die.
The digitalisation of our everyday lives
All of us have at least part of our lives online and in digital assets such as emails, social media profiles, cryptocurrency and online bank accounts, to name just a few. The law recognises that digital assets can be owned. However, there is no consistency between assets and you may find that some of your most valuable assets are mere licences to use a third-party provider’s service. This has significant consequences when attempting to access, manage and transfer digital assets after death.
Flexible working is the future of the workplace.
As well as the obvious benefits to both employers and employees of continuing to combine working from home with going into the office and more flexible hours, there are employment law and other legal implications that employers will need to consider. Each organisation’s requirements will be slightly different.
Supporting businesses in digital transformation.
The metaverse. Artificial intelligence. E-sports. Cryptocurrency. Traditional business models and industries have either been or are being disrupted by digital innovation, paving the way for new opportunities and changing “the way that things are done.”
Listen to the latest in our UK/USA podcast series
Read our latest article: Regulators outline plans to improve diversity in financial services
Read our latest article: English court dismisses section 68 challenge to calculation of ICC award
Read our latest news: Real Estate & Construction team joins Collyer Bristow from Ince & Co
Listen to our latest podcast: Planning Across the Pond (Part 1)
Read our latest article: UK Supreme Court rules Mozambique Tuna Bonds case can be tried in England
If it's urgent, please
call +44 20 7242 7363
< Back to menu
I have an issue and need your help
Scroll to see our A-Z list of expertise
< Back to menu
I'd like to just search for something