Renting a room in your home: tax form help

Income from renting rooms in your home​

From 2023, a new income tax exemption is available for those letting out a room in their home using a 'rent-a-room' arrangement.

To qualify as a rent-a-room arrangement:

• the total gross income must not exceed £10,000
  
• the room must not be rented to a family member
  
• the room must be in your main residence, and cannot be a self-contained unit
  
• the lodger must be over 18, or placed in the room by an appropriate organisation if they are under 18
  

In these circumstances, taxpayers can receive up to £10,000 per year tax free.

In any other circumstances, the flat rate deduction is available.

Filling out the form

Tick the box to confirm if you provide meals and then enter the total gross income you received in the year if the income doesn't qualify for the rent-a-room arrangement.

Deductions​

You’ll receive a flat rate deduction against this income:

• 25% deduction if no meals are provided
• 50% deduction if meals are provided

More help

For more information:

Property income and tax