Donate SIGN UP

Tax free rental income

Avatar Image
Barquentine | 11:48 Fri 01st Feb 2008 | Law
3 Answers
My landlord says that he can't let the seven of us renting rooms in his very large house have locks on our doors. When we ask why not he explained that, if we have locks, it would mean he has to pay tax on the rental income. He used to live at the property but has since bought another flat and moved out a couple of years ago. Does anyone know if this is a scam, or is there a genuine tax break for landlords letting shared houses with no separate locks to each room?
Gravatar

Answers

1 to 3 of 3rss feed

Best Answer

No best answer has yet been selected by Barquentine. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.
I assume youre referring to the Rent a Room scheme, which gives a tax free income below a certain amount?

From what I know about this, the LL has to be resident and it has to be the LL's family home. Have a look here...

http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/Taxes/TaxOnPropertyAndRentalIncome/DG_401780 4

If this is the scheme youre referring to then I doubt if your LL is eligible.
There is no way seven tenants can come within the scope of the tax free scheme - unless they are paying less than �10 each and the landlord also lives there.

Even with the rent a room the lodger is allowed to put a lock on his or her bedroom door.
Is this not a house in multiple occupation?

1 to 3 of 3rss feed

Do you know the answer?

Tax free rental income

Answer Question >>

Related Questions