Renting to Family.

[Harry Fisher]

Later this year when my rental property is ready there is a chance my own son will be renting it off me, (he is thinking about it), what is the position as regards tax if I was to do this, can I just say I was letting him live there, and take the rent in cash without declaring it?

[Richlist]

No that would be breaking the law.

[Melboy]

You could rent to your Son at below market and letting agent value as there is no hard and fast rules on rental prices.

You would still need to declare the rental income anyway to HMRC because should it be discovered what you are doing they will come down hard on you with no excuses accepted.

Always remember that there is always someone prepared to grass you up and it may not be a family member that would stoop to doing this.

[Harry Fisher]

I agree with the above, but at the moment my son is living with us at home and paying me so much a month 'board and lodging' as most families do, and no one expects us to pay tax on that?

[Melboy]

I agree with the above, but at the moment my son is living with us at home and paying me so much a month 'board and lodging' as most families do, and no one expects us to pay tax on that?

A whole new set of rules come into play if you enter the rented property business and you will have to accept this as a fact that differs from Kids paying for their "keep" under the same family roof. Most of us have been there and done it.

Your biggest problem is convincing your Son about all the additional housing expenses that will be required from him to pay.

Probably the biggest reason why Kids ask to come back home when they realise just how much it does cost to run a home and put food on the table.