Thursday 31 May 2018, Wimbledon fortnight is an ace opportunity for local residents to benefit from an increase in visitors attending the All England Lawn Tennis Club for the tournament. ICAEW explains how living in the capital can result in scoring an extra £7,500 in tax-free earnings.
Sarah Ghaffari, ICAEW’s Tax Faculty’s Technical Manager, explains: “The Rent a Room tax exemption allows any household to earn up to £7,500 tax free annually by renting out a room in their main residence. Wimbledon, and other large sporting events, provide a perfect opportunity to rent out a room as sports fans race to the capital to cheer on their favourite players. The tax exemption is automatic, if the rental income is lower than the threshold. If you exceed the £7,500 limit, you will need to file a tax return.
“If you take in a lodger, you must tell your mortgage lender or landlord and your buildings and contents insurer to make sure you aren’t breaching the terms of your mortgage, lease or insurance. Your insurance company may need to arrange extra cover.”
Can you get the advantage?
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