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:
* 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.