§ Baroness Hamwee
asked Her Majesty's Government:
Whether they accept that potential participants in the Rent a Room scheme for letting furnished rooms in their own home are deterred by their possible liability for capital gains tax on the sale of their home, and in particular by the apparent complexity of the position as explained in the Inland Revenue leaflet IR87, and if so whether they will consider a simplified and more easily understood form of exemption.
The Earl of Caithness
Participation in the Rent a Room scheme will not normally lead to any capital gains tax liability when the home is sold. Inland Revenue leaflet IR87 is currently being revised to include Rent a Room. The revised version will make this point clear.