Tax implications of Homes for Ukraine

Written by yasiradnan94
16 June 2022

Ukrainian refugees are being hosted by private individuals and organisations in spare rooms and properties across the UK.

The Government is providing hosts with a monthly payment of £350 per property, administered by local authorities. This payment is only given to those who register as sponsors through the Homes for Ukraine scheme and will be paid for up to 12 months.

The host is expected to provide rent-free accommodation for at least six months although they can ask the refugees to contribute towards the cost of meals provided and extra energy and water used. The host cannot claim expenses against the income received.

The monthly payments are free of tax and national insurance in the hands of the host. They are also disregarded as income for state benefits, council tax discounts and rent-a-room relief.

Where the host is a company the payments are exempt from corporation tax. The residential property used to house the refugees is not subject to the annual tax for enveloped dwellings while it is used for the Homes for Ukraine scheme.

Non-doms regime abolished

As expected, the Chancellor has confirmed the abolition of the generous tax regime enjoyed by non-UK-domiciled individuals, or ‘non-doms’. Broadly, the current rules apply to a UK resident whose permanent home - or domicile - for tax purposes is outside the UK. These...

SDLT: Higher Rate for Additional Dwellings increased

The stamp duty land tax (SDLT) surcharge levied on purchases of second and subsequent homes has been increased from 3% to 5% with immediate effect. The higher rate applies to purchases of second homes and buy-to-let residential properties. The change applies to...

Inheritance tax reform

The Chancellor has extended the current freeze on inheritance tax (IHT) thresholds until 2030 and announced changes to the treatment of inherited pensions and other IHT reliefs. The nil-rate band (NRB) is the amount of any estate that can be inherited tax free. It has...

Related Posts

Making tax digital threshold reduced to £20,000

Making tax digital threshold reduced to £20,000

Many more sole traders and landlords will be required to comply with making tax digital (MTD) for income tax when the qualifying income threshold is reduced from £30,000 to £20,000. The Budget confirmed that taxpayers with qualifying income of £50,000 or more will be...

Evidence needed to claim employment expenses

Evidence needed to claim employment expenses

HMRC has tightened up the process for claiming tax deductible employment expenses following a series of high-profile scandals. If you incur job-related expenses of up to £2,500 which are not fully reimbursed by your employer you may be able to claim tax relief. For...

Non-doms regime abolished

Non-doms regime abolished

As expected, the Chancellor has confirmed the abolition of the generous tax regime enjoyed by non-UK-domiciled individuals, or ‘non-doms’. Broadly, the current rules apply to a UK resident whose permanent home - or domicile - for tax purposes is outside the UK. These...

We use contact information you provide to us to contact you about our relevant content, products, and services. You may unsubscribe from these communications at any time. For information, check out our Privacy Policy.

Open chat
Hello 👋
Can we help you?