Rent A Room Tax Relief 2017

If you let a room in your home the income you receive may be exempt from tax.

Rent a room tax relief 2017. This included rent paid for flats apartments or houses. This is halved if you share the. Rent tax credit ended on 31 december. The rent a room scheme the rent a room scheme lets you earn up to a threshold of 7 500 per year tax free from letting out furnished accommodation in your home.

For the tax year 2016 to 2017 the annual rent a room limit is 7 500. It did not include rent paid to local authorities or the army. You could only claim the tax credit if you are renting on 7 december 2010. While the room was sub let john spent 1 500 on repairs on maintaining the let room.

Rent tax credit up to 31 december 2017 you could claim a tax credit if you paid for private rented accommodation. 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. Rent a room relief provides income tax relief for those letting out furnished accommodation. Frank lets out the spare room in the home he owns for a rent of 200 a week giving him an annual income of 10 400 which is more than the rent a room allowance.

In 2017 the government introduced new tax allowances for property and trading income to simplify. This limit was 14 000 in 2017 and 12 000 in 2016 and 2015. Rental income from renting a room in your home and related services is exempt from tax up to a maximum limit of 14 000. What conditions must be met.

John qualifies for rent a room relief for 2018 as his gross income from letting the room did not exceed the 2018 limit 14 000. His tenant paid him gross rent of 13 000. The income you receive must not exceed the exemption limit. If he stays in the rent a room scheme he will be taxed at his top rate of tax on the income above 7 500.

This reduces to 3 750 if someone else receives income from letting accommodation in the same property such as a joint owner.