trustee Posted August 18, 2009 Report Share Posted August 18, 2009 come november time my son's house will no longer be in trust but will become his cause he will be 18 . Because his girlfriend is pregnant he intends to still carry on renting out two of the rooms but him and his girlfriend will be moving into the house. As this is his house how will this effect what tax he has to pay on the rents he earns off the two rooms, will it still be at 18 percent, which up to now he has been putting by for when his self accessment tax form comes through in april next year. thanks in advance Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted August 18, 2009 Report Share Posted August 18, 2009 come november time my son's house will no longer be in trust but will become his cause he will be 18 . Because his girlfriend is pregnant he intends to still carry on renting out two of the rooms but him and his girlfriend will be moving into the house. As this is his house how will this effect what tax he has to pay on the rents he earns off the two rooms, will it still be at 18 percent, which up to now he has been putting by for when his self accessment tax form comes through in april next year. thanks in advance As a live in Landlord Tenant stsus will change to lodger under licence ..and a tax allowance on the first £5000(ish??_ of rent received) google rentaroom tax relief for accurate figs and more info ...or wait for Plym to give a more defined answer!!! Link to comment Share on other sites More sharing options...
trustee Posted August 18, 2009 Author Report Share Posted August 18, 2009 thankyou i will also wait to see if they reply Link to comment Share on other sites More sharing options...
plym77 Posted August 19, 2009 Report Share Posted August 19, 2009 hi Live-in landlords have a choice of either operating 'rent a room' or normal letting. Under rent a room, your son (I assume he is the sole owner) will be able to receive £4250 a year from the other rooms. Receipts above this would be taxable in full. Alternatively, he can operate a normal rental account and allow a proportion of relevant costs against the income he earns. The tax rate is 20% for income tax at basic rate (40% if higher rate), not 18% (that is the CGT rate), but depending on other income, his personal allowance may also be available. I trust this helps Regards Sherena Link to comment Share on other sites More sharing options...
trustee Posted August 19, 2009 Author Report Share Posted August 19, 2009 Thankyou so much for your help, i think the rent room scheme would be a good way to go, glad you told me about the tax too, another landlord told me it was 18 percent so that is what we have been putting by every month in another account so he doesnt spend it. yes he is the sole owner, he doesnt want the other tenents to leave because they have been friends for years, the male being his best friend since age 8 and the girl is pregnant who lives there and she is so happy there, so he wants to continue to rent to them. Housing in gloucester is bad at the moment and many wont take council. we take council but got the tenents to open a credit union account so the council pay the rent into the credit union account and then credit union put it in our sons bank account so it doesnt go into the tenents hand at any time which the tenent prefers and it works well for us. once more thanks again Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted August 19, 2009 Report Share Posted August 19, 2009 Thankyou so much for your help, i think the rent room scheme would be a good way to go, glad you told me about the tax too, another landlord told me it was 18 percent so that is what we have been putting by every month in another account so he doesnt spend it. yes he is the sole owner, he doesnt want the other tenents to leave because they have been friends for years, the male being his best friend since age 8 and the girl is pregnant who lives there and she is so happy there, so he wants to continue to rent to them. Housing in gloucester is bad at the moment and many wont take council. we take council but got the tenents to open a credit union account so the council pay the rent into the credit union account and then credit union put it in our sons bank account so it doesnt go into the tenents hand at any time which the tenent prefers and it works well for us. once more thanks again If the "girl" who is pregnant is your son's (Landlord) girlfriend and she is "council" ie claiming benifits ...then you may have a farily large problem looming with regard to LHA being claimed for the girl..soon to be girl/baby because your son/Landlord will not get agreement for LA to pay LHA for rent as he is related (very closely) to T (girl & soon to be child . i dont really get inveloved in LHA T so someone else needs to step in here to confirm ??? Mark ??? Link to comment Share on other sites More sharing options...
trustee Posted August 20, 2009 Author Report Share Posted August 20, 2009 hi, the one girl in the house pregnant isnt his but yes his girlfriend also would be moving in and i did wonder how that would work with council as soon as you think life is going smooth something always happens lol thankyou so much for your reply Link to comment Share on other sites More sharing options...
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