Answers · UK 2025/26
Can I rent out a room in my UK home tax-free?
Yes — the Rent a Room Scheme allows up to £7,500/year tax-free rental income from a furnished room in your main home. Income above £7,500: choose between Rent a Room (£7,500 tax-free allowance) or normal rental income (full expenses deductible).
Full answer
The Rent a Room Scheme allows UK homeowners and tenants to receive up to £7,500/year tax-free for renting out a furnished room in their main residence (£3,750 if shared). No need to declare on Self Assessment if under threshold. Above £7,500: opt to keep £7,500 allowance and pay tax on the excess only — OR — use normal rental income rules (deduct full expenses like cleaning, utilities, mortgage interest fraction). Choose the lower-tax option annually. Conditions: must be your main home, room must be furnished, tenants can be lodgers or short-term Airbnb guests. Doesn't apply to renting out an entire property when away. Stops applying if you turn home into separate flat. Excellent way for empty-nesters or first-time buyers with spare rooms to boost income tax-free.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.