What is the Rent a Room Scheme?

The ‘Rent a Room Scheme‘ was introduced by Government to encourage the more efficient use of residential properties with surplus accommodation. The scheme allows owner occupiers to benefit from a modest rental income from the partial letting of their main residence without needing to pay tax on the rent received.

A homeowner can let a room or an entire floor. There is a maximum rental threshold of £4,250 per annum. The personal tax free allowance is halved if you share the property with another and they also claim relief.

Relief is claimable through your tax return. However, if your total annual income is less than the threshold you may not need to submit a claim for this relief. Alternatively, you can declare all property related income and expenditure in the normal manner and choose not to use the allowance.

If you rent a room in your Bracknell home or run a bed and breakfast from your home then you may wish to consider using this scheme. The scheme cannot be used where a property is converted into self contained flats.

For further information see the Government website about the Rent a Room Scheme or contact us on 01344 860121.

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