Is Box 44 Residential property finance costs applicable for the Rent a Room Scheme?

Can I add my mortgage interest in Box 44 Residential property finance costs if I opt in Rent a Room Scheme?

Hi CheddarCat,
No because the mortgage interest is not an additional cost.  
You were paying that mortgage before you got the lodger in.  
The finer details of the rent a room scheme can be found at PIM4000 - Rent-a-room: contents.
Thank you.


 

Hi, thanks for the reply. I mean for the year that I opted in Rent a Room Scheme with a lodger, not before I got the lodger in. Regards,

Hi not hmrc admin but if you're claiming rent a room relief (£7,500) no expenses can be deducted.

Hi,

Which tax year are you refering to? If it is 2021-22 then you need to amend your return as advised.

Thank you.

Hi, that was back in 2019-20 and 2020-21.

Hi,

As the years you mention are out of date for a return amendent. You will need to write in to claim overpayment relief in the correct format. You must highlight the bullet points in SACM12150.

SACM12150 - Overpayment relief: Form of claims

Thank you.

Hi, Could I double check what overpayment relief claim you're referring to? Is it a Rent-a-Room or Residential property finance costs?

Hi CheddarCat
Please confirm which expenses you are referring to and the years to which they apply.
Thank you. 

Hello CheddarCat, Regarding your question about the mortgage interest when you have a lodger: the mortgage interest is not considered an additional cost that you can deduct due to the lodger's rent because it is an expense you were already obligated to pay before the lodger moved in. It doesn't become a deductible expense simply because you're now receiving rental income. For a comprehensive understanding of how the Rent-a-Room scheme works, including which expenses can and cannot be claimed, you might want to review the official guidelines. You can find detailed information here: https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim4000 Thank you for reaching out, and I hope this clarifies your query!