The budget saw the chancellor announce a new level for the RENT A ROOM SCHEME starting from 01 April 2016.....
RENT A ROOM SCHEME levels will be increased to £7500.00 Per Annum
The government will increase the level of RENT A ROOM relief from April 2016 to £7500.00 This is being increased from £4250.00
This is quite attractive for people with a spare room in their house which they are happy to rent out to a tenant. Effectively this allowance makes the rental income tax free up to this level. If the allowance is claimed the homeowner cannot claim for their expenses incurred from letting the room. It also only applies if the tenant is sharing part of your normal living space. This relief cannot be claimed if the room is self contained and separate from the main residence.
Please call if you would like to discuss this or any issue. We are happy to offer a free 1 hour meeting to go over any issues or questions you have.