Rent a Room Scheme: how much lodger income can be tax free
Published · 3 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
The Rent a Room Scheme lets people who let furnished space in their own home earn some rental income tax free. This guide explains the limit, the shared limit, when it applies automatically and when a tax return is needed.
Who this guide is for
This is general information for people who let a furnished room, or part of their home, to a lodger. It covers the tax side only. It does not apply if you let out a whole property you do not live in, and GOV.UK says the scheme cannot be used for homes converted into separate flats. It is not advice for your own situation.
The figures below were read on GOV.UK on 13 October 2026.
What the scheme does
The Rent a Room Scheme is a tax relief run by HMRC. If you let furnished accommodation in your home, you may be able to earn up to a set amount each year without paying Income Tax on it. GOV.UK says you can let as much of your home as you want.
Who can use it
GOV.UK says you can opt in at any time if you are a resident landlord, whether or not you own your home, or if you run a bed and breakfast or guest house. You count as a resident landlord if you let out part of a property that is your only or main home.
When it applies automatically
If your income from the letting is below the limit, the tax exemption applies automatically. GOV.UK says you do not need to do anything in that case.
If you earn more than the limit
If your income is above the limit, you must complete a tax return. There are two routes, as GOV.UK describes them.
- Opt in to the scheme and claim the tax free allowance on your tax return.
- Opt out and instead record your rental income and expenses on the property pages of your tax return.
GOV.UK points to HMRC helpsheet HS223 for how to fill in the form and when opting out makes sense. Many people compare the two routes before deciding, since they work in different ways.
Occasional letting and short stays
GOV.UK says that if you only occasionally rent out part of your home, for example through short-term rental apps, it is worth checking whether you need to tell HMRC about the income. The page links to an HMRC checker for this.
Other things to know as a resident landlord
- You are responsible for keeping the property safe and in good repair.
- A lodger cannot challenge the agreed rent.
- You can give less notice to end a letting than you would if you rented out the whole property.
GOV.UK also suggests getting references from a possible lodger and following them up before signing anything.
Differences across the UK
The GOV.UK pages give one limit and do not set out separate figures for Scotland, Wales or Northern Ireland. Other rules that affect lodgers, such as housing law, can differ between nations, so it can be worth checking the official pages for where you live.
Check before you act
Tax limits and rules can change. It is worth confirming the figures on the official pages linked below before relying on anything here. Free help is available from Citizens Advice and MoneyHelper.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
