New rules proposal for rent a room relief

In 2018 the Chancellor announced a significant restriction to rent-a-room relief with effect from 6 April 2019. It would only be allowed where you occupy your main residence as sleeping accommodation for at least some of the time you let part of it. The good news is that this proposal was dropped from the Finance Act 2019 .

This change means you can continue to temporarily let your entire home and receive rents of up to £7,500 per year which are exempt from tax. The property must remain your only or main residence during the letting period even though you’re absent. This means you can’t claim rent-a-room relief for a period if you have given your tenant exclusive use of the whole property.

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