Rent a room relief is available to: (i) owner occupiers. (ii) a parent renting to their child. (iii) an employee renting to their employer.

• A. (i) and (ii) only.
• B. (i) only.
• C. (iii) only.
• D. (i), (ii) and (iii).

Answer: (B)

Rent a Room relief is a tax simplification for income earned by letting a furnished room in your own home to a lodger. It only applies when you are the owner-occupier of the property—you live there and rent out part of it to someone who is not a family member or an employee in a work arrangement. In other words, the relief is designed for private lodgers living in the landlord’s home, not for related-party arrangements or company/employee housing. Therefore, only the owner-occupier scenario qualifies, while a parent renting to their child or an employee renting from their employer do not fit this relief.