Renting out during the Olympics? Check whether there’s tax to pay

You can take advantage of the scheme if you let furnished accommodation – a room or an entire floor of your home – to a lodger who pays to live in your home, sometimes with meals provided, and who occasionally shares the family rooms.

In addition, you can use the Rent a Room scheme if your home is rented; you don’t have to be the owner.

The scheme does not apply, however, if your home is converted into separate flats that you rent out, if you let unfurnished rooms in your home, or if you let your whole home. In these cases you need to declare the rental income to HMRC and pay tax in the normal way.

Full details of the scheme can be found at:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804

In the run-up to the Games HMRC will conduct free advice sessions around the country on renting out property.

The next session is on 17 June at St John’s Church, Broadway, Stratford, London. The event runs for around three hours, starting at 10am.

Places for all of the seminars need to be booked in advance on 0845 603 2691 (open from 08:30 to 17:00, Monday to Friday) or at www.hmrc.gov.uk/bst. People can also find out where their nearest seminars are by ringing the booking line.

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