Rent a Room Scheme

(asked on 7th July 2026) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will review the annual allowance for the Rent a Room Scheme to allow it to catch up with inflation.


Answered by
Dan Tomlinson Portrait
Dan Tomlinson
Exchequer Secretary (Cabinet Office) (Jointly with HM Treasury)
This question was answered on 14th July 2026

The Rent a Room Scheme lets individuals earn up to a threshold of £7,500 per year tax free from letting out furnished accommodation in their home.

Increasing the allowance would carry a cost, and doing so is not currently under active consideration. Although, all tax policies are kept under review in advance of Budgets and this representation will be considered.

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