Income Tax (Trading and Other Income) Act 2005 section 789

The individual's limit

Section 789 sets out how to determine the maximum amount of rent-a-room income that an individual can receive tax-free in a given tax year.

• The individual's rent-a-room limit depends on whether they meet the exclusive receipts condition for the tax year
• If the exclusive receipts condition is met, the limit is the full basic amount of £7,500
• If the exclusive receipts condition is not met, the limit is halved to £3,750
• The Treasury has the power to change the basic amount by order