UK announces tax breaks for Sharing Economy

British Chancellor George Osborne announced a breakthrough development Wednesday, the first “tax break for the digital age,” which, according to the Telegraph, “will allow people (in the United Kingdom) who sell goods or services online to earn up to 2,000 pounds (UK) without paying tax.”

The Sharing Economy will see the biggest boost with this tax break, as people who rent out spare bedrooms on Airbnb and sell objects on eBay will likely benefit most.

People who sell on Airbnb can already earn tax-free income under Britain’s “rent a room” allowance, the Telegraph says. This development basically sets Britain up as a powerful ally of the Sharing Economy, and a prime supporter of a new form of business and lifestyle.

Of course, this signals warnings for the UK hospitality industry, which will no doubt be upset about this benefit for the little guys who use Airbnb and other house-sharing platforms.

And since the UK is now on board with tax breaks for the Sharing Economy, one can only surmise how long it’ll take before this type of policy is discussed in America.

Needless to say, this is huge news that proves one form of disruption has caused real ripples in the global marketplace.

Advertisements