People in the UK who let out their homes on Airbnb got a £1,000 tax break

Chancellor George Osborne has announced a tax break for "micro-entrepreneuers" that use sharing economy platforms like Airbnb.

From April 2017, homeowners in the UK that let out their properties on Airbnb won't need to declare or pay tax on the first £1,000 they earn on the platform per year.

The same goes for anyone else that offers a service or product on a different sharing economy platform.

"We're going to help the new world of micro-entrepreneurs who sell services online or rent out their homes through the internet," said Osborne in his annual Budget speech at the House of Commons.

"Our tax system should be helping these people so I'm introducing two new tax-free allowances each worth £1,000 a year, for both trading and property income. There will be no forms to fill in, no tax to pay - it's a tax break for the digital age and at least half a million people will benefit."

Both tax breaks are expected to cost a total of £235 million a year by 2018,according to The Guardian.

Osborne announced separate plans in July 2015 to increase tax free earnings to £7,500 for Airbnb hosts who qualify for rent-a-room tax relief. This policy comes into effect next month.

Airbnb published a blog post in response to the Budget saying it was "good news for the growing number of Airbnb hosts in the UK."

Read more @ http://www.businessinsider.in/BUDGET-People-in-the-UK-who-let-out-their-homes-on-Airbnb-got-a-1631000-tax-break/articleshow/51432589.cms