Jennifer Adams considers the capital gains tax position when someone takes one or more lodgers into their home.
Most property owners who let out a room will be aware of rent-a-room relief, the income tax exemption for up to £7,500 a year of gross receipts (£3,750 if income is shared with another) from furnished accommodation in their only or main property. They will also expect any gain on disposal to be covered by capital gains tax (CGT) principal private residence (PPR) relief.
A sting in the tail?
However, some may not realise that
