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

    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 )..


      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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