The Government of Jersey has launched a new tax relief initiative for homeowners. The Rent-a-room Scheme allows Islanders to receive tax relief on the income they receive from renting a room in their home.
This policy, which was voted in by States members in December 2022, exempts homeowners from paying tax if they make less than £10,000 per year from renting out a room. The minister for housing and communities stated that approximately 25% of households in Jersey are “under-occupying their accommodation,” and that this scheme will increase the availability of accommodation for those seeking a place to stay for a short period of time, such as foreign language students or workers on short-term contracts.
To be eligible for this tax relief, homeowners must ensure that;
- the total gross income must not exceed £10,000
- the room must not be rented to a family member
- the room must be in your main residence, and cannot be a self-contained unit
- the lodger must be over 18, or placed in the room by an appropriate organisation if they are under 18
Click here for more information about this initiative.
To find out how Bracken Rothwell can help with your tax requirements, get in touch with Giles Morison ATT (Fellow)