Jennifer Adams outlines the tax implications of renting a room to another family member such as a sibling.
Recent statistics show that in 2023, 28% of all young people aged 20 to 34 years were living at home with their parents. Whatever the scenario, having an extra adult in the household means extra costs such as increased utility bills, groceries, and other living expenses, leading many to pay rent.
That’s a relief
There are tax implications in doing so, although if the amount is kept under £7,500, the amount received may be covered by rent-a-room relief.
The rent-a-room relief scheme was introduced in the UK on 6 April 1997, its objectives being to increase the supply and variety of low-cost accommodation, and labour mobility (e.g., enabling workers to use short-term accommodation to move around the country). In addition, by
