Tax on Rent Repayment Order Awards in England

Receiving a rent repayment order award can raise immediate tax questions for tenants and renters in England. This guide explains who must report an award, how awards are treated by HM Revenue & Customs, and when to use Self Assessment tax returns. It also covers practical steps if you receive an award from the First-tier Tribunal (Property Chamber), how to document the payment, and when to seek advice. The language is plain and aimed at tenants and renters dealing with repairs, unlawful eviction, deposit issues or illegal fees. Where specific forms or tribunal processes apply, the guide points to official GOV.UK and HMRC sources and gives clear examples so you can act with confidence.

What a rent repayment order award is and who gets one

A Rent Repayment Order (RRO) is an award made so a tenant or former tenant can recover rent or housing-related payments paid to a landlord or agent when the law has been broken. The First-tier Tribunal (Property Chamber) hears many RRO claims and can order repayment of rent or housing benefit overpaid by a tenant or authority^[1]. An award may be paid direct to the tenant or to the local authority in some cases.

Does an RRO award count as taxable income?

Whether an RRO award is taxable depends on what the payment compensates. HM Revenue & Customs treats some compensation and awards as taxable income and others as capital or non-taxable compensation depending on their nature and what loss they replace. In practice, many tenant RRO awards are treated as a repayment of rent rather than earnings, but you should check HMRC guidance and, where needed, report via Self Assessment^[5].

Common scenarios and tax treatment (plain examples)

• If the award simply repays rent you already paid, HMRC may see it as a repayment of expenditure rather than taxable earnings.
• If the award includes compensation for personal injury or distress, separate tax rules may apply and parts of the payment could be tax-free.
• If the award is a substitute for lost rental income (for a landlord), that income is usually taxable for the recipient as business or property income.

Official forms and when to use them

These are the main official forms and processes tenants or award recipients may need to use in England, with practical examples.

• Self Assessment tax return (SA100) — use this if HMRC tells you the award must be declared or if you already file returns. Example: a tenant receives an RRO award that HMRC considers taxable income; they include the award on their SA100 in the relevant tax year.^[5]
• Apply to the First-tier Tribunal (Property Chamber) — there is no separate RRO paper form number for tenants; you follow the tribunal application process and guidance on GOV.UK when making a claim. Example: a tenant uses the online guidance to start a claim for rent repaid after the landlord charged an unlawful fee.^[2]
• Company tax return (CT600) — if a company receives an award (for example, a corporate landlord), that award should be included in company taxable profits and reported on CT600.

How to report an award to HMRC (practical steps)

If you believe an award is taxable or HMRC instructs you to report it, follow these steps and keep documentation.

• Keep tribunal documents and bank receipts showing the award amount and payment date.
• Check HMRC guidance on whether the award is taxable and which tax year it belongs to.^[5]
• If required, include the amount on your Self Assessment (SA100) for the relevant tax year, with a note explaining the nature of the payment.

The law you should know

Relevant housing legislation in England includes the Housing Act 1988 and the Rent Act 1977 which set out tenancy law and tenants' rights; RRO powers sit elsewhere but these Acts are main references for residential tenancy rights in England and Wales. Name-checking legislation is useful, but always check the specific tribunal decision and statute that applied to your RRO claim for exact details.^[3][4]

FAQ

Do I always need to pay tax on a rent repayment order award?

Not always; it depends on whether the award replaces rent paid (often not taxable) or compensates for loss or income (which may be taxable). Check HMRC guidance or ask HMRC directly.

Who handles RRO claims in England?

The First-tier Tribunal (Property Chamber) handles many residential RRO claims and decisions; you can start the process using GOV.UK guidance.

What paperwork should I keep after an RRO?

Keep tribunal decisions, payment receipts, bank statements and any correspondence with the landlord or council as evidence for tax and future disputes.

How-To

1. Collect and scan tribunal decision, bank receipt showing the award payment, and any invoice or breakdown from the landlord.
2. Check HMRC guidance on whether the award needs reporting and which tax year applies.
3. Complete a Self Assessment (SA100) if HMRC requires reporting; include a clear explanation in the additional information section.
4. If unsure, contact HMRC or a free legal advice service before filing to avoid mistakes.
5. Keep records for at least 22 months after the end of the tax year if you are not required to file, or longer if you do file.

Help and Support / Resources

• First-tier Tribunal (Property Chamber) - GOV.UK
• Rent repayment orders: claim rent back - GOV.UK
• Self Assessment (SA100) - GOV.UK

1. [1] First-tier Tribunal (Property Chamber) - GOV.UK
2. [2] Rent repayment orders: claim rent back - GOV.UK
3. [3] Housing Act 1988 - legislation.gov.uk
4. [4] Rent Act 1977 - legislation.gov.uk
5. [5] Self Assessment (SA100) - GOV.UK