HMRC propose to restrict the availability of “rent a room” relief to situations where the taxpayer is living in the let property for at least some of the time that the accommodation is let.
Here’s an example of the tax savings that could be made:
Take David, he sells a second home realising a gain of £100,000 and so has a capital gains tax liability at 28% i.e. £28,000. (presuming he has already used his annual exemption).
HMRC has launched a new consultation inviting comments from interested parties regarding the introduction of new VAT reverse charge legislation for certain construction services.