News: Press Releases:
Wimbledon tennis bonanza

06 June 2005

With homes renting for as much as £6,000 a week to tennis fans and players during Wimbledon this year ­ homeowners are being warned to declare any income to the Inland Revenue.

"Every year dozens of Wimbledon residents jump on the tennis band wagon to make some extra cash," said senior tax advisor Geraint Jones, at London chartered accountants Blick Rothenberg. "It ranges from renting a room, a parking space, selling strawberries and cream, allowing souvenir sellers a pitch in your front garden, to moving out for the two week tournament period and renting your whole house."

He added: "Many people could be on to a real winner. Simply renting their house out for two weeks could pay their mortgage for the whole year". This year will be no exception with Wimbledon properties being rented from £900 a week for a one bedroom apartment to £6,000 a week for a five bed roomed house. This all has to be declared to the Inland Revenue.

Joanna Doniger of Tennis London, the leading company renting Wimbledon properties for the tournament said: "Village properties are still much in demand and making premium rents for this short period, but homes in Southfields and Wimbledon Park are much slower to move. Our sales figures remain as buoyant as ever in this very tight niche market."

Geraint Jones added: "The Inland Revenue are well aware of what goes on during Wimbledon, and have many ways of independently identifying undeclared income. It is very important that all such income is properly declared." The good news is that under current legislation just renting out a room or two for less than £4,250 for the year will not be liable for tax. This is an annual limit, split between husband and wife if the property is owned jointly. This allowance may also be available if the owners move out for a week or two. However, extra income derived in this manner must be declared and every self-assessment tax form has a box that should be ticked, relating to the rental of rooms.

People should remember that even if they do not exceed the limit they have to declare the transaction on their forms.

If they make more than £4,250, higher rate taxpayers will be charged 40% of the excess or they could include the full income and then deduct expenses such as letting agent's fees, insurance, advertising and wear and tear. The taxpayer can choose which is better.

For more information, or to set up an interview, please call David Barzilay +44 (0)20 7544 8980, Lizzie Jordan +44 (0)20 7544 8827 or Steven Bruck +44 (0)20 7544 8970

EDITOR'S NOTE:
Blick Rothenberg's client base includes a wide range of private sector companies in a variety of industries as well as professional firms and charities. This breadth of clientele means that they have practical experience of all accountancy issues ranging from UK tax and audits to acquisitions, disposals of businesses and international taxation. They also provide all-round taxation, accountancy and other financial services to their personal client portfolio.
Blick Rothenberg is authorised & regulated by the Financial Services Authority to carry on investment business.