Barbara rented a room in her main residence and the monthly rent is £370. 09/10, her irrecoverable debt was a month’s rent. If Barbara wants to use rent a room relief, which calculation below is the right one: 1. £370*12 – £4250 = £190 — property income 2. £370*11 = 4070 < 4250 — exempt
If the annual rent is below £4250 it is exempt. If it is above then calculate the property income as normal or if lower take rental income – £4250 Hope this helps