PIM4015 | Rent-a-room: going abroad and/or occupying job related accommodation

Summary

Taxpayers who go abroad to work and, in the meantime, let their UK homes are unlikely to qualify for rent-a-room relief during their absence. This is so even if the absence is intended to be temporary (for say 2 or 3 years) and they are to occupy accommodation abroad that they do not themselves own. The same principles apply to taxpayers who occupy job related accommodation. Rent a room relief is available to individuals providing furnished residential accommodation in the taxpayer's only or main residence.

Example 1 below deals with the most common situation where rent-a-room relief will not be due.

Example 2 deals with the exceptional situation where the taxpayer may still qualify for rent-a-room relief.

Example 1: relief not due

Judah's only residence until 10 June 2011 was Bramble Cottage in Devon.

On that date he was sent by his employer to assist in a computer marketing exercise in America for a period likely to last for two or three years.

He returned on 20 December 2014.

While he was in America he occupied a luxury flat in Los Angeles provided rent-free by his employer.

During his absence he let Bramble Cottage via an agency to a friend from 1 July 2011 to 13 December 2014.

During the years 2011-12 to 2014-15 Bramble Cottage was not, as a matter of fact, Judah's only or main residence.

Rent-a-room relief is not available to Judah for any of these years.

Example 2: relief due

Judah's only residence until 10 June 2011 was Bramble Cottage in Devon.

On that date he was sent by his employer on several secondments to assist in a computer marketing exercise in America. Between 11 June 2011 and 20 December 2014 Judah spends 4 months each year in a luxury flat ion Los Angeles provided rent free by his employer. When not working in Los Angeles Judah returns to the UK and lives in Bramble Cottage for the remaining 8 months each year.

Whilst he is in Los Angeles Judah rents Bramble Cottage to a variety of holiday guests, students and family members.

During the years 2011-12 to 2014-15 where Bramble Cottage is , as a matter of fact, Judah's only or main residence, Judah is entitled to rent a room relief for those years.