Boost for Airbnb as chancellor announces homeowners can make up to £7,500 in rent
The chancellor has announced a major extension to the tax break of people renting out rooms for rent. The plans will come into effect for April next year and shows a &pound;3050 increase in tax breaks for up to 90 days a year helping home-sharing businesses like Airbnb and OneFineStay. Head of Public Policy, Patrick Robinson said in a statement,'The measures further demonstrates the UK government&rsquo;s commitment to being a world leader in the sharing economy and shows their support for local residents across the country who are sharing their homes.'
Homeowners who rent out a room to a lodger, or via popular online sites such as Airbnb, have been promised extra tax breaks thanks to yesterday's summer Budget.

Chancellor George Osborne's announcement of a major extension in the tax break for people who let out a room in their own home will come into effect from April next year and has been greeted with enthusiasm by the private rental sector.

Homeowners will be able to receive as much as £7,500 in rent from lodgers without having to pay tax, compared with the current Rent-a-Room scheme limit of £4,250.

Airbnb: An online marketplace that allows holidaymakers and homeowners to get in touch directly

This is the latest move to open up the private rental space to more people.

Earlier this year the government reformed legislation on private room rental, implementing new rules that allow homeowners in the UK to rent out a room for up to 90 days a year without the need for planning permission.

Airbnb, an online platform allowing individuals to rent out their rooms, entire property, or unique space such as a tree or boathouse to visitors, has welcomed the changes.

Head of public policy Patrick Robinson said: 'We are celebrating great news from the UK where the government has announced changes to the Rent-a-Room relief, allowing hosts to share space in their home tax free on income up to £7,500.

'The measures further demonstrates the UK government’s commitment to being a world leader in the sharing economy and shows their support for local residents across the country who are sharing their homes.'

Airbnb has been banned in some cities in the US - for example in New York owners or tenants cannot legally rent their apartments out for short periods, less than 30 days, unless they are also living in the property.

There is also a tax issue; in many cities those renting out holiday accommodation are expected to pay a hotel or tourist tax.

Patrick added: 'The government continues to implement measures that set new standards for innovative cities and we look forward to continuing our work with them to make the UK a world leader for the sharing economy.'

In the government’s previous Budget statement, Osborne also announced measures that he said would put the UK 'at the forefront of the sharing economy', including making it easier for individuals to sublet a room, encouraging government employees to use sharing economy solutions to book accommodation when travelling on official business, and encouraging local authorities to use their discretionary powers to support the sharing economy.