Spring Budget 2017 – Rent a Room Relief

Rent a Room relief allows an individual to receive up to £7,500 (2016/17) per year tax-free from letting out furnished accommodation in their home. Currently, the relief does not stipulate a minimum length of letting for the relief to apply.

In the Spring Budget 2017, the Government announced that it will consult on proposals to amend the rent-a-room relief rules to ensure it is targeted to support longer-term lettings. This will align the relief more closely with its intended purpose, to increase supply of affordable long-term lodgings.