‘Rent-a-room relief’ allows you to let out furnished accommodation in your home, tax-free, subject to a threshold. The threshold is halved if you share the income with your partner or someone else. The relief is open to anyone renting out room (i.e. a room or even an entire floor) in their home; whether they own the property or not. It is therefore available to people running bed and breakfasts and guest houses.
In the Summer Budget, it was announced that rent-a-room relief would finally increase next year. After 18 years of being at £4,250, it will increase to £7,500.
If you’d like to discuss your affairs in more detail and find out how you’ll be affected by the measures announced in the Summer Budget, contact us and we’ll put you in touch with your local TaxAssist Accountant who would be happy to talk to you.
By Jo Nockels
Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.