Jersey bedroom rental tax relief scheme launches

Islanders renting out a room will be able to apply for tax relief

Tax relief for homeowners renting out a room has been launched by the Government of Jersey.

Islanders who let out a room can now receive tax relief on rent they receive under the Rent A Room Scheme.

In December 2022, States members voted to exempt homeowners from paying tax if they made less than £10,000 per year from renting a room.

Deputy David Warr said the scheme would address the island's "accommodation shortage".

The minister for housing and communities said about 25% of households were "under-occupying their accommodation".

He said: "The scheme builds on the current tax treatment of lodger income and I am confident that it will lead to an increase in accommodation for people seeking somewhere to stay for a relatively short time.

"That might be foreign language students, or workers in Jersey for short-term contracts, or islanders who just need a bedroom.

"Whoever it is, they are likely to feel more welcome, and more in touch with Island life, if they're staying in someone's home."

Tax relief will be provided as long as:

• The total gross income does not exceed £10,000

• The room is not rented to family

• The room is in the homeowner's main residence, not a self-contained unit

• The lodger is over 18 or placed by an appropriate organisation if under 18

Deputy Rob Ward put forward an amendment to introduce safeguards to the scheme, which was rejected by States members in December.

He said the new scheme was "not addressing the housing crisis faced by young people wanting to build a career on the island or for families struggling to find appropriate accommodation".

Follow BBC Jersey on Twitter and Facebook. Send your story ideas to [e-mail].