Tara Swain

The second room would be rented out not to a lodger, however, but to people who would use it to conduct business (e.g. hosting yoga classes, meditation sessions, etc). https://www.gov.uk/government/publications/rent-a-room-for-traders-hs223-self-assessment-helpsheet/hs223-rent-a-room-scheme-2023 "You cannot use the scheme if the accommodation is: [...] used as an office or for any business — you can use the scheme if your lodger works in your home in the evening or at weekends or is a student who is provided with study facilities" So my interpretation is that this couldn't come under rent-a-room? But if so, then would the income stream from that second room able to come under the £1000/year property tax exemption? (Referring to this allowance: https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income)

Suppose I own a house and both: 1. Rent out one of the bedrooms, furnished, to a lodger, under the rent-a-room scheme. 2. Rent out a separate room, a gallery area, to someone who uses it as a yoga studio, receiving less than £1000 per year in income. Does the property allowance tax exemption apply to the income from (2), even though I am also using the rent-a-room scheme?

If a group of 4 friends own a home together, how much income can they each individually get, tax-free, from a lodger under the rent-a-room scheme? Is it £3750 x 4 = £15,000? (The guidance only specified what happens if there are two homeowners.)