Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of raising the threshold on the Rent a Room scheme.

Rent a room relief provides an effective incentive for people to make spare rooms available for rent.

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.

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.