Rent a room

Rent a room

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Client rented a room in her house until she left the property at the end of July. Post July the property was fully let to new tenants.

The question is whether the rent a room figure of £4,250 needs to be prorated from April to July i.e. 4/12 or whether this can be claimed in full prior to the fully let period.

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By sparkler
25th Jun 2012 14:09

It is my understanding that rent a room relief is calculated for individuals rather than having anything to do with length of property ownership.  So an individual is entitled to tax free rent a room income of £4,250 from 6 April - 5 April (or half that if the income is joint), regardless of how long they have let a room for or for how long they have lived in the property in which the room is rented out during a tax year.  Obviously only income that relates to the period in which they also lived in the property would count as rent a room income, and the letting income for the rest of the year is taxed under the normal property rules.

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