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Tax on rental income
JohnW
Posted: 13 September 2017 21:31:11(UTC)
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Chatting to a friend this evening and she said that if a person lets a room, and the rent is less than £80 per week then this income is tax free. A concession made to encourage unused rooms to be let. Does anyone know if this is correct?

Thanks, John
jeffian
Posted: 13 September 2017 22:15:38(UTC)
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Yes, absolutely correct, John, and the allowance has increased to £7500 per year.

https://www.gov.uk/rent-...e/the-rent-a-room-scheme
2 users thanked jeffian for this post.
JohnW on 14/09/2017(UTC), AJW on 14/09/2017(UTC)
JohnW
Posted: 14 September 2017 09:42:43(UTC)
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Thanks jeffian, so she was correct in what she told me! We live and learn!

Regards, John
AJW
Posted: 14 September 2017 11:14:15(UTC)
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Useful to know!
citymoke
Posted: 23 September 2017 03:37:05(UTC)
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So, is it correct then that if one has taken in a lodger and the total rental income per annum is less than £7,500.00, then one doesn't need to even mention it on one's tax return?
S Nanda
Posted: 24 September 2017 10:46:03(UTC)
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That is correct
Tim D
Posted: 25 September 2017 08:12:49(UTC)
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citymoke;51328 wrote:
So, is it correct then that if one has taken in a lodger and the total rental income per annum is less than £7,500.00, then one doesn't need to even mention it on one's tax return?


That's how I'd interpret the "How it works" information here.

If you are filling out a self-assessment anyway, the property pages contain one question "If you are claiming Rent a Room relief and your rents are £7,500 or less (or £3,750 if let jointly), put ‘X’ in the box" and another field for "Rent a Room exempt amount".
1 user thanked Tim D for this post.
citymoke on 25/09/2017(UTC)
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