Rent a room scheme

Hi there, My friend and I jointly own a property which currently we both live in. I am thinking about moving out into rental accommodation. If I rented out my room while living elsewhere would this be covered under the rent a room scheme? Alternatively, could my friend, who would still be living in the property, rent out my empty room under the rent a room scheme? Many thanks

Hi
Thank you for your question.
To qualify for the rent a room scheme you must have lived in the property as your main residence at some point during the particular tax year and the room/rooms must have been rented out whilst you were living there.
Please refer to the following guidance for further information : 
Rent a Room Scheme (Self Assessment helpsheet HS223).
Your friend would be entitled to use the rent a room scheme as long as all the conditions were met.

Thank you, that's really helpful. Does it make a difference if she is renting out the room to her boyfriend? Many thanks

Hi Ac04,
Family members and partners who live with you as part of your household are not normally considered lodgers or subtenants.
This is normally seen as cohabitating.
There would have to be a tenancy agreement and be declared to the council for council tax purposes as a tenant and meet the other conditions or rent a room such as having their own room in the property.
Thank you 

Thanks very much for your help! So if my friend and her boyfriend live together and split the costs of the mortgage and bills there are no tax implications for them. What about if my friend's boyfriend pays me and I use that money to pay the mortgage/bills? Would I have to pay tax on that income? Many thanks

Hi,

If you are receiving income from a property you own then this would be deemed rental income and as such taxable. Rent a room would not apply in this case. You can see guidance here:

HS223 Rent a Room Scheme (2023)

HMRC cannot advise on your own financial arrangements/agreements.

Thank you.