Rent a Room Relief Query

Howjoe1 · 2016-03-02 18:02:43

I jointly bought a property with a friend as an investment. He uses it has his main residence. I live elsewhere (i.e. I own a different property which is my PPR). He is letting a room out and keeps the full rent he receives, which I am agreeable with, since he looks after maintenance etc. He is entitled to claim rent a…

02-03-2016 07:02PM

#1

Howjoe1

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I jointly bought a property with a friend as an investment.

He uses it has his main residence. I live elsewhere (i.e. I own a different property which is my PPR).

He is letting a room out and keeps the full rent he receives, which I am agreeable with, since he looks after maintenance etc. He is entitled to claim rent a room relief.

Question: Could I be held accountable to declare 50% of any rental income he receives based on my ownership?

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#2 04-03-2016 08:06PM

Lockedout2

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There are a few issues here.

Is the joint owner paying down the joint mortgage? If so they are paying down your debt, which is rent derived by you from the property. This is income in your hands and should be returned for income tax by you. As the joint owner is then rented the other half of the house from you then they are at liberty to claim "rent a room" relief.

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