Clarification on Lodger vs. Tenant for Capital Gains Tax

Dear HMRC, I would like clarification on the difference between a lodger and a tenant for Capital Gains Tax purposes when renting out a bedroom in my home. Specifically, I am interested in how this distinction affects eligibility for Private Residence Relief (PRR) and Letting Relief. After reading the guidance here: https://www.gov.uk/tax-sell-home/let-out-part-of-home , I noticed some potential confusion. - At the beginning, it states: “You are not considered to be letting out your home if you have a lodger who shares living space with you.” - Later, it gives an example: “You rent out a large bedroom to a tenant. The bedroom amounts to 10% of your home.” I had assumed that when the owner lives in the property and rents out a room, the renter would be considered a lodger, not a tenant. Could you please clarify what differentiates a tenant from a lodger in this context? Regards Andy

Hi,
A lodger shares a home with a live-in landlord, whereas a tenant rents a property in which the landlord does not live.  
Private residence relief relates to your main residence, even if you have a lodger.
Thank you.

Hi, In the guidance it says that if you let out a portion of your home then you are not eligible for Private residence relief, instead you are eligible for Letting Relief. "You’ll need to work out what proportion of your home you lived in. You only get Private Residence Relief on this proportion of your gain." Example: (https://www.gov.uk/tax-sell-home/let-out-part-of-home ) "You rent out a large bedroom to a tenant. The bedroom amounts to 10% of your home." So clearly tenant and lodger is not the same thing when it comes to renting out rooms in your main residence. Just trying to distinguish the two.

Hi ,
 

No they are not.  A landlord and lodger will normally have a licence instead of a tenancy agreement.  Tenants have the right to exclude the landlord from their space that means you should give them notice before you want to enter their part of the property.  Lodgers cannot exclude the landlord from their room.  Another difference between lodgers and tenants is that a lodger has a right to live in your property but does not have exclusive rights to any part of it unlike a tenant. Thank you .