Charging your children rent?

With effect from 6 April 2016 the tax free amount of rental income you can receive from renting out a room or rooms in your home increases from £4,250 to £7,500 per annum.

If tax-allowable expenses are greater and you want to claim them instead you have to disclaim rent a room relief and provide details of actual costs.

If a part of your home is entirely separate from the part that you live in such as a self-contained flat or a annex, then rent a room relief is not available unless it is only temporarily separated.