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Rent a Room Scheme

Note: due to the effects of COVID-19, some of the information on this page might not currently apply.

What is the Rent a Room Scheme?

The Rent a Room scheme is a government incentive that allows landlords and live-in landlords to earn £7,500 of tax-free income every year, by letting out a spare room in their property. 

The threshold for the scheme was increased back in 2016, as the result of SpareRoom’s successful six-year campaign.

How the scheme works

Things to think about

If you usually fill out a tax return then give it some extra thought – the Rent a Room scheme doesn’t allow you to claim expenses for wear and tear, insurance etc. So if you spend more on decorating the room and keeping it in order than you make in rent, you’ll end up making a loss and won’t be liable for tax.

For more information, download our free guide to the rent a room scheme.

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