Rent a room relief

Dear Sir/Madam, I would like to make an enquiry about whether rent-a-room relief is available if I was to be in the scenario below. My sister and I intend to purchase a flat with the help of a residential mortgage so my sister can live there. The flat is a two bed flat. I decide to live elsewhere and decide to rent one of the two rooms in the flat (one room belonging to my sister and one mine) as I am not living there. All the income from my room would be mine and my sister is not entitled to it. Would there be rent a room relief available to me on this income, or any other deductions, such as mortgage interest payments, council tax, etc? Kind Regards 

Name removed admin .

Hi,

Rent-a-room applies to income from providing furnished residential accommodation in the taxpayer’s only or main residence. For example, a taxpayer may benefit where they take in a lodger. The rules either exempt rental income or tax it on a more favourable basis.

Under the rent-a-room scheme, a taxpayer can be exempt from Income Tax on income from furnished accommodation in their only or main residence, if the gross receipts they get (that is, before expenses) are £7,500 or less, see PIM4012. They can’t then claim any of the expenses of the letting, see PIM4020.

PIM4000 - Rent-a-room: contents

Thank you.