There was good news for lodger landlords in the July 2015 budget as the Chancellor announced a ‘rent a room’ tax allowance increase from £4,250 to £7,500.
This was long overdue and indeed Spareroom.co.uk had been campaigning for this for years.
This came into force from April 2016.
The increased tax allowance will make it more economic for home owners (and also tenants if they can get their landlord’s permission) to make some extra money from their property by renting out a room.