Rent a Room Scheme

MVT

Hi everyone,

I have a potential client who's contacted me regarding the rent a room scheme. I know that the current tax free limit is £4250 but he is actually renting the house with his partner and they want to ask his friend to move in and share the cost of the bills 3 ways. He will be charging £250 per month (£3,000 per annum).

I was just wondering if the £4250 relates to 1 person or jointly?

Many thanks in advance.

groundy

Per Household

MVT

Thanks.

qwerty

The rent-a-room scheme is per property. Interestingly, if the income is split between more than one person, than the rent-a-room relief if halved for each person.

Therefore, say there were three owners who lived in a house, and they rented out one of the rooms, splitting the income 1/3rd each. They would each get £2,125 rent-a-room relief.

If two of them lived elsewhere, those two would obviously not get rent-a-room relief, but the person who still lives there would still only get £2,125 rent-a-room relief.