½Û×ÓÊÓƵ

Rent-a-room relief for a tax year is available to an individual receiving income (defined in the legislation as 'rent-a-room receipts') from renting out furnished accommodation in their residence which meets the conditions below. To qualify for relief, the individual must not be chargeable to income tax for the same tax year on any other type of income from the same residence¹. So, for example, if the taxpayer has any unfurnished letting in the same residence, then they are not a qualifying individual and not only are they not eligible for rent-a-room relief in respect of the unfurnished letting but even the furnished letting cannot attract the relief². Similarly, if receipts of a single trade include both rent-a-room and non rent-a-room income then none of that income would be eligible for relief. As a result, a trade only qualifies for rent-a-room relief if its income consists wholly of rent-a-room income.

Letting of rooms as office accommodation is not accepted by HMRC as qualifying for rent-a-room relief³.

The rent-a-room receipts must satisfy the following