This applies if you’re letting a furnished residential room in your main home where you live. It doesn’t apply if the accommodation is in a separate flat.
Rent a Room relief allows you to receive up to £7,500 tax free or £3,750 from joint lettings.
When you use the Rent a Room relief, you can’t use any expenses or capital allowances or create a loss.
In the ‘Do you want to claim Rent a Room relief?’ box, answer ‘No’ if you want to use your expenses or capital allowance or create a loss.
Answer ‘Yes’ if you want to claim the Rent a Room relief. You’ll then be asked if your receipts are below the limit. If you answer ‘Yes’ to this question, don’t include this income anywhere else. If you answer ‘No’, include this income on the ‘Details for other property income’ page in the ‘Total rents and other income from property’ box.
Enter the exempt amount later on the ‘Adjustments for other property income’ page in the ‘Rent a Room exempt amount’ box.
You cannot use the Property Income Allowance against income that qualifies for Rent a Room relief.
