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Posted Fri, 26 Jan 2024 10:58:29 GMT by
Dear all, I am UK resident / tax payer, originally from Poland (Polish national) which leads to my question. I have parents in Poland who are without income and rely on my financial support. With the increased cost of living, it is getting more and more difficult for me. One idea I had was to rent out a bedroom in my (two bedroom) flat - however having done some reading on the topic, I believe the rental income would be taxed at 45% (as I am already in the higher tax band), significantly reducing the extra money that would yield, rendering it not worth the trouble. Is there a way to get the rental agreement signed between UK tenant and my parents (living outside UK, in Poalnd), rent sent directly to non-UK bank account so that the rental income would be taxed at a lower rate in Poland (it would be the only income for my parents) rather than cut by half by UK tax (which in my case would be 45% as I am already in the higher income band thanks to the income from my job) and only then send it to them? To add, the flat is owned by me and have mortgage on it. Kind regards Wojciech
Posted Mon, 29 Jan 2024 12:20:18 GMT by
Sorry just a small clarification - I am in the higher tax band which is 40%, not 45%.
Posted Mon, 29 Jan 2024 15:27:38 GMT by HMRC Admin 19
Hi,

The income arising from your income from property, if you do rent-a-room, would be chargeable at your appropriate rate of tax.

The tax charge cannot be referred to your parents as they do not own the property. Information concerning rent-a-room can be found hereL

PIM4000 - Rent-a-room

Thank you.

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