UK Government: Airbnb Good, Private Landlords Bad
Airbnb hosts will get a tax-free allowance worth £1,000 a year, George Osborne has revealed
Homeowners who use their homes to gain additional income by letting rooms through Airbnb have received a welcome tax break, while private landlords have been hit in the pocket.
During Chancellor George Osborne’s budget speech, he announced a tax-free allowance worth £1,000 a year as part of the Government’s plan to help micro-entrepreneurs, such as Airbnb homeowners.
Economic benefits
A spokesperson for Airbnb said: “This is good news for the growing number of Airbnb hosts in the UK who are sharing their homes, earning a little extra money to pay the bills and bringing new economic benefits to their communities.”
Meanwhile, Osborne had bad news for private landlords.
In his speech, he said that capital gains tax has been cut, with the higher rate of the tax falling from 28 percent to 20 percent and the basic rate falling from 18 percent to 10 percent.
But capital gains tax, which applies to all residential properties except the main home, will be subject to an eight percent surcharge, which leaves them at the original rate.
From April 1, 2016, an extra three percent levy will also be applied to standard stamp duty rates on all purchases of property not intended to be the purchaser’s main home.
Osborne said these tax changes were intended to simultaneously encourage independent entrepreneurship and raise more than £600m, some of which will go towards helping the homeless.
How much do you know about tech startups? Take our quiz to find out!
