Skip to content
£ moneyguide
Glossary · Tax

Rent a Room Scheme

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.

Last reviewed:

Definition: Lets you earn up to £7,500 a year tax-free from letting furnished accommodation in the home you live in.

The £7,500 threshold halves to £3,750 if shared with another joint owner. The allowance applies automatically below the threshold; above it, you choose between paying tax on receipts minus £7,500 or treating the activity as a normal rental business.

Primary source: gov.uk/rent-room-in-your-home

More Tax terms

← All glossary terms