What is the Rent a Room Scheme allowance?
Where a link is marked *, it is a partner link — we receive commission at no extra cost to you. Links without a * earn us nothing. How we make money.
In short: £7,500 of tax-free income per tax year from letting furnished accommodation in your only or main home. Halved to £3,750 if shared with another joint owner.
Last reviewed:
Reviewed by Kaiser Khan
Under the Rent a Room Scheme you can earn up to £7,500 a year tax-free from letting furnished rooms in the home you live in. The allowance is automatic if your gross receipts are at or below the threshold — you do not need to do anything.
If your receipts exceed £7,500, you can choose between paying tax on the excess (gross receipts minus £7,500) or treating the income as a normal rental business and deducting actual expenses. You make this choice each year.
The scheme covers lodgers and short-term lettings of a room in your main home. It does not apply to letting a separate flat or a property you do not live in.
Primary source: gov.uk/rent-room-in-your-home
Part of our Benefits & tax
This quick answer sits inside our wider benefits & tax hub — with sub-guides, calculators and step-by-step explainers on the same topic.
Read the full benefits & tax guide →