Main residence 2nd income

[ASB]

My Accountant has confirmed that yes i can get tax relief on the rental as long as it is below the 4125k mark.

Great

Thats not quite the whole story. You can deal with the income in the following ways:-

1) Tick the box on your tax return that says "used rent a room scheme". Deduct 4125 from the rent. Put the rest of the rent (if any) in the other income box with a note (i.e. you get taxed on anything over 4125). If you do this you can claim none of the associated costs.

2) Fill out and submit the property pages (i.e. schedule A) of a tax return. In this way you are taxed on the actual profit. This may be beneficial if, e.g., the entire house is let as you will be able to claim mortgage interest against the rent. [Strictly if the entire house is let the rent a room scheme does not apply].