Rent a room scheme
Tax Planning and Financial

9 Thanks
91 Posts
2 weeks ago
I am looking at moving into one of my bigger properties and am thinking of renting a room to cover costs. The rent a room scheme allows rental income of £7500 a year but which is only £625 a month. What would happen to any rent above the £7500 if I charged more and would it mean that the whole amount becomes taxable or would only any amount above £7500 be taxable? I also wonder about any future CGT tax liability on any amount above the £7500 a year. Anyone know if I would also run into CGT if I charged above the £7500 as I believe within that amount you dont accrue CGT when selling but above the £7500 I am not sure. Many thanks for any input on the above

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