Andy

The fact that the rent is from the same property is irrelevant. Each period is independent. First period is a standard normal rental income. It was not your main residence, since you rented the whole property out. Second period is rent from lodger on a main residence hence the full 7500 per year rent a room relief applies to that amount received. By the way, if during the first period you haven't rented the whole property out, and instead kept a room for yourself and rented other rooms to lodgers, then that first period would also be classified as renting to a lodger. Because it would still be your main residence even if you were abroad for 10 months. But if you rented out the whole property then it was not your main residence, and it was a standard rental arrangement.

I am seeking clarification regarding the tax treatment of a second home I own, which is not my main residence. I visit this property occasionally for work purposes and rent out two of its three rooms. When I visit, I stay in the remaining room. Could you confirm whether I can apportion expenses (such as bills and mortgage interest) between personal and rental use? For example, since two out of the three rooms are rented out, would I be able to allocate two-thirds of these expenses (including mortgage interest) to the rental activity? Additionally, does the fact that the mortgage is residential (and not a buy-to-let) affect this apportionment, or is it irrelevant? I would appreciate any relevant resources or links to further information. Regards 

Hi, In the guidance it says that if you let out a portion of your home then you are not eligible for Private residence relief, instead you are eligible for Letting Relief. "You’ll need to work out what proportion of your home you lived in. You only get Private Residence Relief on this proportion of your gain." Example: (https://www.gov.uk/tax-sell-home/let-out-part-of-home ) "You rent out a large bedroom to a tenant. The bedroom amounts to 10% of your home." So clearly tenant and lodger is not the same thing when it comes to renting out rooms in your main residence. Just trying to distinguish the two.

Dear HMRC, I would like clarification on the difference between a lodger and a tenant for Capital Gains Tax purposes when renting out a bedroom in my home. Specifically, I am interested in how this distinction affects eligibility for Private Residence Relief (PRR) and Letting Relief. After reading the guidance here: https://www.gov.uk/tax-sell-home/let-out-part-of-home , I noticed some potential confusion. - At the beginning, it states: “You are not considered to be letting out your home if you have a lodger who shares living space with you.” - Later, it gives an example: “You rent out a large bedroom to a tenant. The bedroom amounts to 10% of your home.” I had assumed that when the owner lives in the property and rents out a room, the renter would be considered a lodger, not a tenant. Could you please clarify what differentiates a tenant from a lodger in this context? Regards Andy