Tax implication of switching mid-year from rent-a-room to letting out whole flat

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    Tax implication of switching mid-year from rent-a-room to letting out whole flat

    Hello. I have a mortgaged two-bed flat. This tax year (17/18), I have rented a room to a lodger. The income from that will be below the £7,500 rent-a-room tax threshold.

    However, I am possibly about to go abroad for work, and so will need to let the whole flat. If I let the whole flat in March, i.e. in this tax year, would that then invalidate the rent-a-room exemption? That is, would I then need to pay tax (less expenses) on the income I've had this year from my lodger?

    Any advice gratefully received! Thanks

    #2
    You should contact the tax office for advice if switching mid-year, to ascertain if you lose the rent-a -room allowance or not.

    Its better if you want to keep the rent a room allowance for 2017-2018 , to vacate your own residence at end of March 2018 and start the rental of your flat from April 2018 onwards ( and register yourself as a non-resident landlord with HMRC so that you can receive the rental income without tax deduction by letting agent )..

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      #3
      Not what you asked but if the lodger stays on they become a tenant and wouldn't switch back to a lodger on your return.

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