Income Tax (Trading and Other Income) Act 2005 section 309

Rent-a-room relief

Section 309 explains how rent-a-room relief overrides the normal rules for calculating profits from a UK property business when an individual lets out furnished accommodation in their own home.

• The normal profit calculation rules for a UK property business are modified where rent-a-room relief applies
• The relief applies specifically to income from letting furnished accommodation in the individual's only or main residence
• Depending on the total amount of rental income, the income may either be fully exempt from tax or subject to a special alternative calculation
• The rent-a-room rules take priority over the standard property income profit calculation rules