Asked by: Baroness Gardner of Parkes (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government, further to reports that AirBnB will share data with HMRC about the earnings of hosts in the UK for the years 2017/18 and 2018/19, what steps they are taking to ensure all short term letting agencies do the same; and what plans they have to share this data with local councils to ensure properties in their areas are let for only 90 days of short term lettings a year.
Answered by Lord Agnew of Oulton
HM Revenue and Customs (HMRC) receive data routinely from a variety of sources. This data supports compliance activity to reduce the size of the gap between the tax which is owed and that which is paid.
HMRC understand that the short-term property letting market is a rapidly evolving sector and are working in partnership with companies such as Airbnb to address the tax consequences of these changes, supporting taxpayers in ensuring they are aware of their tax obligations and pay the right tax at the right time.
HMRC are bound by a strict duty of confidentiality as laid down in the Commissioners for Revenue & Customs Act (CRCA) 2005 with respect to all of the information they hold in connection with their functions. HMRC officials may share information only in the limited circumstances set out in legislation, which include disclosures for the purposes of HMRC’s functions, through specific information sharing legislative gateways.
Asked by: Baroness Gardner of Parkes (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government, further to Lord Ahmad of Wimbledon’s response to the Earl of Lytton on 7 January (HL Deb, col 338), whether homeowners will be liable for tax on short-term lettings in London.
Answered by Lord Deighton
Individual homeowners receiving rental income from letting their property (whether short-term or long-term) will be chargeable to income tax on the profits from that letting. The exception is where they are renting furnished accommodation in their only or main home, in which case the Rent-a-Room scheme allows them to receive tax-free rental income of up to £4,250 per year.