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House of Commons Hansard
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Private Rented Housing
26 November 2009
Volume 501
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To ask the Chancellor of the Exchequer if he will bring forward legislative proposals to increase to £9,000 the income tax threshold for income earned through renting a room in a property. [301452]

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To ask the Chancellor of the Exchequer (1) what average annual income each homeowner who rented out a spare room or rooms in their property obtained from such rents in the latest 12 month period for which information is available; [301062]

(2) how many homeowners in each region are renting out a room in their property;

(3) what the tax revenue to the Exchequer from homeowners renting out a room in their property was in each of the last five years.

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All taxes are kept under review, with any changes announced by the Chancellor as part of the Budget process.

Based on the Family Resources Survey, HM Revenue and Customs (HMRC) estimate that the average annual income obtained from renting out a room was £3,000 in 2007-08. Estimated numbers of homeowners renting out rooms by region are shown in the following table.

Government office region

Number of homeowners

North East

1,200

North West

5,600

Yorkshire and Humberside

4,500

East Midlands

4,200

West Midlands

6,100

East of England

11,600

London

40,200

South East

25,800

South West

20,300

Wales

3,700

Scotland

5,800

Northern Ireland

1,000

Total

130,000

HMRC’s administrative systems do not hold sufficiently detailed information to estimate the tax revenue attributable to renting out a room. Estimates of the cost of the rent-a-room income tax relief are provided in ‘Tax ready reckoner and tax reliefs’ published alongside the annual pre-Budget report and available on the Treasury’s website.