Asked by: Baroness Watkins of Tavistock (Crossbench - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what consideration they have given to raising the Rent a Room Scheme tax-free limit from £7,500 to account for rises in energy costs, council tax, and interest rates since the limit was last raised in 2016.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Rent a Room Scheme has been a feature of the income tax system since 1992.The current threshold provides an income tax exemption on income of up to £7,500 for individuals who let furnished accommodation in their only or main residence. This reduces and simplifies the tax and administration burden for those affected and has taken some taxpayers out of self-assessment entirely.
At present, the Government believes that the Rent a Room Scheme threshold is set at an appropriate level.