November 7th 2014
If you let a room or rooms in your main home you will not pay any tax on rents received as long as the gross receipts do not exceed £4,250 in a tax year.
This relief extends to owner occupiers and tenants who receive rent from letting furnished accommodation in their home.
If your gross receipts are more than £4,250 you can choose between paying tax on:
Rent-a-room relief applies to a tax year and the limit of £4,250 is reduced to £2,125 if during the basis period someone else also received income from letting accommodation in the same property.
Please contact DSC Chartered Accountants in Harrogate if you wish to discuss this article in more depth.
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