Overview
- Combining the £12,570 Personal Allowance with HMRC’s Rent‑a‑Room limit of £7,500 lets eligible resident landlords receive up to £20,070 tax‑free.
- Where rent income is shared, the Rent‑a‑Room exemption is £3,750 per person, which can effectively raise an individual’s tax‑free threshold to £16,320.
- Rent‑a‑Room applies only to furnished rooms in your main home and not to buy‑to‑let properties, with tax owed only if gross receipts exceed the allowance.
- The Marriage Allowance allows a spouse or civil partner to transfer up to £1,260 of their Personal Allowance to the other partner subject to eligibility.
- Personal Savings Allowance limits remain £1,000 for basic‑rate taxpayers, £500 for higher‑rate taxpayers, and none for additional‑rate taxpayers, while advisers say combining multiple HMRC reliefs can deliver more than £16,000 tax‑free for some households.