PT 14 b Rent a Room & Property Allowance

Question 1

Is the £7,500 limit per spouse, per house or per room?

Answer 1

per house

Question 2

Under rent a room, what would be the treatment if you earn less than £7,500 in gross rent?

Answer 2

Treated as no rent & no allowable expenses

OR elect for rent a room to not apply

Question 3

Under rent a room, what would be the treatment if you earn more than £7,500 in gross rent?

Answer 3

Taxed on normal basis with allowable expenses

OR

elect for rent a room and no relief for real expenses (just deduct £7,500)

Question 4

For both rent a room and property allowance when must elections be made?

Answer 4

By first anniversary of 31st January following tax year

Question 5

Property allowance
(eg rent out driveway/garden)

what are the basics?

Answer 5

Works in the same way as rent a room with option for elections

£1,000 per person

the interest tax reducer cannot be claimed if property allowance is used

Relevant property income = gross property income before expenses and excludes income on which rent-a-room allowance is claimed