Rent a room relief is a tax relief available to those who rent out a room within their only or main residence. The current relief allows the first £7,500 of income generated in this way to be tax free.

The legislation states that allowable rental receipts must be for the use of furnished accommodation, in a residence, in the UK and that it must be the only or main residence of the owner for some or all of the tax year. The legislation does not specify that the lodgers must only occupy a single room of the house. Therefore if you were to rent out your main residence whilst you were on holiday, you would be able to claim rent a room relief against the income.

As with all of our tax tips and web pages this information is necessarily summarised and of a general nature.  If you would like detailed specific advice please contact us.