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.