RentToOwn-HouseFinder.com
Do I have to pay tax if I let a relative live in a house I own RENT FREE?
I have a quarter share in a house we bought for a retired relative to live in RENT FREE for the rest of their lives. I just need to know whats the best way to keep it cheap. Should I be concerned about tax if they live RENT FREE? Could we charge a minimal rent and they claim Benefits to pay it?
Public Comments
- This sounds like one for the Citizens Advice Bureau, From bitter experience I know that the housing benefit want to know the relationship between landlord and tenant and certainly an 18+ on job seekers living at home cannot claim housing benefit. As for tax, if you are not charging rent, you are making no money therefore you wont pay tax, of course if you have to sell then that is a whole different can of worms. Go se the C.A.B.
- go to the citezens advice bureua
- No, there is no tax if you let it rent free. However, you ought to give the relative a lease at a very small rent - say £1 per year - because othrewise you might find that after 12 years they can claim "squatters rights" and they become owner, not you.
