Newth Talks Tax: Renting a room out in main home

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Renting a room out in main home

Jennifer enquired whether, when a room in a residence is rented out, the person receiving the rental income can claim expenses against the income such as a proportion of the mortgage interest and insurance etc.

Simon Sweetman replied in the affirmative, but remarked that it may be better to claim the non-taxable rent a room relief of up to 4,250.

Paul Soper confirmed that this was correct, and added that, if the rent is marginally over 4,250 a year, the owner has the choice of paying tax on the excess over 4,250 or working out the net profit less expenses in the usual way.

Rent a room relief was introduced by para.2 of Schedule 10 to the Finance(No.2) Act 1992, and is now contained in section 788, ITTOIA 2005 in respect of years...

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01st Jul 2013 16:18


Where two people (X and Y) share ownership of the property can X claim £2,125 rent-a-room relief, while Y calculates thier taxable profits under method A?

Can Y thereby claim relief for all expenses?    

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