Jump to content
House Price Crash Forum
Sign in to follow this  
dgul

Renting Out A Room For Business Use

Recommended Posts

The high price of property around the world has many side effects - now people are renting out rooms for use by professionals during the day.

eg, http://www.bbc.co.uk/news/business-35246320

I'm not sure about the effects of this - I think if you rent out a property for business use you need planning and need to pay rates - and there is no 'small landlord' exemption to income tax as for renting out a room for lodgers. I think there might be a HMRC bill coming down the road for people who take part in this...

Share this post


Link to post
Share on other sites

The guy in the article seems to think there are no legal issues involved in renting out a room for business purposes.

If you live in a flat most leases prohibit business use - so he's definitely wrong about that.

Share this post


Link to post
Share on other sites

Careful, one could have said a similar thing about driving people to their destination in a private car a few years ago, look at Uber et al now.

Share this post


Link to post
Share on other sites

Using a room in ones own house for working-from-home business is well-established, and there have been actual cases to determine that it doesn't incur business rates or CGT on any part of the house.

Business use that might cause a nuisance in a residential area (like lots of coming and going, especially if involves something bigger and/or more frequent than a regular private car) is another issue.

Hotdesking homes could be the next grey area. But it probably shouldn't be discouraged too much, as it's an efficient use of housing stock in areas where there's pressure on it.

Share this post


Link to post
Share on other sites

Using a room in ones own house for working-from-home business is well-established, and there have been actual cases to determine that it doesn't incur business rates or CGT on any part of the house.

I think that is the point. You have to have planning and pay rates if you're running a business - but there is an established exemption for people working from their own home. There is no such exemption for renting out this space from another - working from someone else's home. As the rules stand this is the same as renting out a full office.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   94 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.