Rent-a-Room Relief:
£7,500 Tax-Free Income

Got a spare room? You can earn up to £7,500 a year tax-free by renting it out.

How It Works

Rent-a-Room Relief allows you to earn up to £7,500 per year from letting out furnished accommodation in your main home without paying tax on it.

This applies whether you're renting to a lodger, an Airbnb guest, or a long-term tenant.

Key Rules

  • ✓The room must be furnished (at minimum: bed, chair, table, storage).
  • ✓It must be in your main home (not a second property).
  • ✓If you earn under £7,500, you don't need to declare it to HMRC.
  • ✓If you earn over £7,500, you can still claim the relief but must declare the excess income.

Airbnb & Short-Term Lets

Yes, Rent-a-Room Relief applies to short-term lets like Airbnb. However, if you earn more than £7,500, you'll need to register for Self Assessment and declare the income.

⚠️ Note: If you're renting out the entire property (not just a room), Rent-a-Room Relief does NOT apply. You'll need to declare all rental income.