Tax break for letting spare rooms will be looked at
THE idea of giving tax breaks to islanders who let out spare rooms will be looked into by Policy & Resources after the States yesterday gave it overwhelming support.
An amendment from Deputy Heidi Soulsby, seconded by Deputy Gavin St Pier, suggested that an annual tax-free allowance could be one benefit identified, but P&R was asked to look at what other benefits might be possible and to report back by next March.
Deputy Soulsby said that a local housing market review had revealed some 2,500 private owner-occupied homes had at least two spare rooms.
More than half of home-owning pensioners had at least one room that was not being used.
While moves were in train to address the housing crisis, particularly in respect of key workers, these could take a couple of years to come into effect, and the amendment offered a potentially swifter solution.
Nobody was against the proposals, although Development & Planning Authority president Deputy Victoria Oliver sounded a warning note at the difficulties of implementing any scheme.
She said she had suggested something similar to the Housing Action Group but told that there were many reasons that the States should not be facilitating such a move.
Among the possible beneficiaries of new accommodation could be teachers, and Education, Sport & Culture president Deputy Andrea Dudley-Owen said she welcomed the amendment and did not think it would be too onerous on the States were it accepted.
However, she pointed out that many teachers who moved to the island did so with families, so it might not suit a lot of them.
Policy & Resources treasury lead Deputy Mark Helyar said the committee supported the amendment, but warned that it might not be able to come back in the time frame.
Deputy Neil Inder said that just because there was a spare room in a property did not mean that the room was not being used – it could be a store room or an office.
He did not like any implication that it was in some way a bad thing to have a spare room or two and that government needed to get involved, which he felt had been present in some speeches.
But he supported the amendment, as did every other member present, and it was passed without opposition.
