From 6 April 2016 Rent A Relief has increased from £4,250 to £7,500. This is an annual allowance which can be deducted from rent received from lodgers where you rent out part of your main residence.
Where income from lodgers exceeds £7,500 a year only the excess is taxable or this can to calculated on an actual cost basis if more beneficial.
As with all of our tax tips and web pages this information is necessarily summarised and of a general nature. If you would like detailed specific advice please contact us.