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Claiming rent a room relief and property allowance

Article ID: 2999
Last updated: 12 Sep, 2019

HMRC have confirmed that an individual can claim the property allowance for one property and rent a room relief for another.

If rent a room income is below £7,500*, this is very straightforward. In HMRC Forms mode, on page UKP1, tick box 4 (If you are claiming rent a room relief and your rents are £7,500* or less). In SimpleStep, go to Other Income > UK Property and Furnished Holiday lettings in the EEA and tick that you’re claiming rent a room relief and also tick that gross rents came to less than £7,500. No other entries are needed for the rent a room income and any other property income and the property allowance can be entered in the usual way.

If rent a room income exceeds £7,500*, in TaxCalc, please follow the steps below:

In HMRC Forms Mode:

  1. Go to UK Property, page 2
  2. In box 20 (Total rents and other income from property), enter the rent a room income after deducting £7,500*, plus other rental income.
  3. In box 20.1 enter the property income allowance being claimed (property income allowance must not exceed the lower of the other property income and £1,000**)
  4. Leave box 7 (rent a room exempt amount) blank.

In SimpleStep:

  1. Go to UK Property and Furnished Holiday lettings in the EEA > Other rental income
  2. If you are pooling rental income from several properties, enter rental income for the rent a room property plus other property minus £7,500*. If you are entering income separately per property, repeat this for each source by creating a name for each.
  3. Enter the property allowance being claimed (only once if entering several properties).
  4. You do not need to make any entries in the rent a room section.

*  If the property is let jointly, the allowance is £3,750 per individual.

** If the property is let jointly, each individual can claim £1,000.

Article ID: 2999
Last updated: 12 Sep, 2019
Revision: 2
Views: 5
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