Nick Wright explains how taking in a lodger can be a tax-efficient way to generate income and may qualify for rent-a-room relief but warns that homeowners and advisers should be aware that certain arrangements, particularly those involving self-contained accommodation, can restrict principal private residence relief for capital gains tax purposes.
Taking in a lodger: Looking beyond income tax
With rising mortgage costs and household expenses, many homeowners consider taking in a lodger. From an income tax perspective, the arrangement is often straightforward. Where furnished
