Rent a room relief

Question 1

What is rent a room relief

Answer 1

If a landlore rents out a room in their own home (their main residence) and the income received is more than £7200 for 2023/24 then they can make an election for rent a room relief

Rent a room relief allows the landlord to calculate their income as follows
Income received - 7200 = income.

Alternately the landlord can choose for the rental income to be calculated in the normal way

Rent received - allowable expenses = income
The main issue with this method is that if is difficult to apportion costs.

Question 2

What if you have multiple tenants in your home

Answer 2

£7200 is per house not per tenant

Question 3

Admin

Answer 3

Claim for rent a room relief needs to be made before 12 months following 31st Janaury after the tax year 31st Janaury 2025.

Question 4

What happens if the property is owned jointly

Answer 4

Half of the rent a room relief is allocated to each owner, regardless of how the income is split

Question 5

What happens when the landlord come to sell their property

Answer 5

No effect to private residency relief full amount can still be claimed.

Question 6

What is rental income is below 7200

Answer 6

Rent a room relief is automatically applied.