Rent a Room for less than 1 year

How do i calculate tax when combining rent a room and full rent int eh same tax year.

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During the first half of the year I rented out a room in my property however in the second half I decided to let the whole house through an estate agent and had a different tenant. Do I treat the 2 classes of rent as separate income/rental activites, ie reporting income for Rent a room scheme and claiming the relief and having a separate entry for Full rent scheme where I report all the income for this and deduct all the expenses even though its for the same property. If I use rent a room schem for the whole year then the second half of the year doesnt qualify as the whole house was rented, furthermore I would be unable to claim the expenses such as interest payments under this scheme, and if I treat the whole year as FULL let, then I wouldnt benefit from the rent a room relief. 

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By Cheshire
08th Aug 2017 11:16

Ask yourself - in the 2nd half of the year are you actually allowed to claim rent a room relief?

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By Tax Dragon
08th Aug 2017 11:45

The question is confused - but not on that point.

However, without numbers, no one can provide correct advice. Any advice provided in the absence of numbers can only be generic - here there is a specific situation with a specific answer; generic advice may not help. A professional that provides specific, helpful and above all correct advice deserves to be paid for it. A non-professional that takes free advice off a forum like this could end up paying more than had they sought paid-for advice.

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By Cheshire
08th Aug 2017 11:55

[quote=Tax Dragon]

The question is confused - but not on that point.

Ah yes, I made an assumption on a point that was not mentioned!

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By ajbanjo
08th Aug 2017 13:56

Hi Chesire, I dont think im allowed to claim rent a room relief for the second part of the year -as it was not under that scheme. The main problem is this, how do I class the rental for the whole tax year since I had two different arangments. Lets assume I made 7000 btw April and September 2016 from renting out a room, i then handed the property to an estate agent who let it the whole house out btw September 2016 and April 2017 for 15000. Do i 'close off' the rent a room recording in September 2016 and apply the rent a room scheme (this isnt mainly to claim the relief but also the simplicity of not including expenses) for that period and then fill in a separate entry for the Full let arrangement applying the normal letting procedure for rental income from Sept 2016 to Sep 2017.

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By Duggimon
08th Aug 2017 16:50

You can claim rent a room or you can apply the income less expenses but you can't split it as far as I know. Happy to be corrected though.

see PIM4010

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