Rent a Room relief + Airbnb

Lavanniaj · 28-12-2020 01:33PM #1

Hi, we are planning to buy a 3 bedroom apartment to live in and will rent out one of the rooms under the rent a room scheme. Would anyone know if we could do the occasional (<90 days) airbnb of the 3rd room without affecting the rent a room relief or the CGT PPR relief if we sell in future? Thank you in advance!

Will Yam · 28-12-2020 06:21PM

Lavanniaj wrote: »

Hi, we are planning to buy a 3 bedroom apartment to live in and will rent out one of the rooms under the rent a room scheme. Would anyone know if we could do the occasional (<90 days) airbnb of the 3rd room without affecting the rent a room relief or the CGT PPR relief if we sell in future? Thank you in advance!

I stand to be corrected on this, but

The income from rent a room will not be affected if you Airbnb the 3rd room.

However, airbnbing the 3rd room will impact on your ppr relief as part of your property will be a commercial enterprise.

Maximus47 · 04-01-2021 02:26PM

Air B and B is considered as Trading and not rental so will not get the rent a room relief and will impact on PPR.

Will Yam · 04-01-2021 02:49PM

Maximus47 wrote: »

Air B and B is considered as Trading and not rental so will not get the rent a room relief and will impact on PPR.

But if they let out one room on rent a room basis, and the other as air bnb surely the room let out on rent a room basis should qualify for that relief?

Maximus47 · 04-01-2021 02:56PM

Yes agree 100%. Only the Air B and B caught as trading. Good idea to value furniture etc for capital allowances and also
portion of light and heat etc.

Lavanniaj · 12-01-2021 02:16PM

Thanks a million both! I had thought though, that if the airbnb was less than 90days and we are living in the property, it would not be considered trading or a change in use?

Will Yam · 12-01-2021 02:24PM

Lavanniaj wrote: »

Thanks a million both! I had thought though, that if the airbnb was less than 90days and we are living in the property, it would not be considered trading or a change in use?

If its not rent a room, its trading.

The 90 day restriction is not, to best of my knowledge a tax issue. It may be illegal to airbnb for more than 90 days but that wouldn’t matter to Revenue.

And, change in use is also, I think irrelevant where tax is concerned.

Revenue will look at source of income

Rent a room - no tax
Airbnb - trading
Renting out a property - rental income (different rules to trading).

Maximus47 · 12-01-2021 03:35PM

In agreement with Will Yam

Rent a Room relief + Airbnb

Comments