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<p>Rent a room relief provides an effective incentive for people to make spare rooms
available for rent.</p><p> </p><p>In 2016, the threshold was raised to give an income
tax exemption on income of up to £7,500 for individuals who let furnished accommodation
in their only or main residence. This aligns with the Government’s objectives of supporting
living standards and increasing the availability of low-cost housing. It also reduces
and simplifies the tax and administration burden for those affected and has taken
some taxpayers out of self assessment entirely.</p><p> </p><p>The Government does
not currently have evidence that increasing the rent a room relief threshold above
£7,500 would further encourage spare rooms to be made available for rent. As with
all aspects of the tax system, the Government will keep this under review.</p>
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