Policy paper

Rent a Room relief increase

This tax information and impact note applies to Income Tax payers with rental income from letting out a room in their home.



This measure will increase the level of Rent a Room relief, which provides for tax-free income that can be received from renting out a room or rooms in an individual’s only or main residential property, from £4,250 to £7,500 per year. It also increases the level if an individual rents out rooms in a guest house, bed and breakfast or similar, providing that it is their main residence. The increase to the Rent a Room limit will apply from 6 April 2016.

Published 8 July 2015