Me

Thank you Admin 19, Can you please advise whether I need to declare the actual income received from the rented room? Or should I declare the expected rental income if I rent out the whole house in the open market?

Good afternoon, I am a Polish citizen currently residents in the UK and is registered as self-employed. My parents built and owned a house in Poland and they have transferred the ownership of the house to me. My father has passed away and my mother is still living in the property. My mother doesn’t pay any rents to me for living in the property. At the moment, my mother rents out one of the rooms and we agreed that she keeps the rental income wholly to support her living expenses in Poland. As the property is under my name, the tenancy agreement is between me and the lodger who rents the room. The rental income for this one room is less than £1,000 per year and tax is being paid in Poland. Please could you advise whether I need to declare the rental income in my Self Assessment tax return in the UK? Can you please also advise whether the tax is based on the actual income received from the rented room? Or is it based on the rental income that I expect to receive if I would rent out the whole house in the open market?